A Primary Advantage for a Depository Institution of Belonging to the Federal

question 119

Multiple Choice

A primary advantage for a depository institution of belonging to the Federal Reserve System is

• A)direct access to correspondent banking services.
• B)the lower deposit reserves required under the Federal Reserve System.
• C)direct access to the discount window of the Fed.
• D)commission less trading of U.S.government securities.

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Definitions:

Buildings Account

An account that records the costs associated with a company's buildings, including purchase price, construction costs, and improvements.

Unamortized Patent

The portion of a patent's cost that has not yet been expensed against earnings over its useful life.

Adjustment Necessary

Indicates a need to modify financial statements or entries to reflect accurate and fair information.

Land Account

An account used in accounting to record the cost of land owned by a company, which is a non-depreciable asset.