Which of the Following Statements Concerning Bank Regulation in the United

question 30

Multiple Choice

Which of the following statements concerning bank regulation in the United States is true?

• A) The Office of the Comptroller of the Currency has the primary responsibility for national banks.
• B) The Federal Reserve and the state banking authorities jointly have responsibility for state banks that are members of the Federal Reserve System.
• C) The Fed has sole regulatory responsibility over bank holding companies.
• D) All of the above are true.
• E) Only A and B of the above are true.

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Definitions:

Proportionate Consolidation

An accounting method where an investor entity combines its share of each of the assets, liabilities, income, and expenses of a jointly controlled entity with similar items, line by line, in its financial statements.

Cost Method

An accounting method used to value investments, where the investment is recorded at its acquisition cost without adjusting for market changes.

Commercial Substance

A situation where the risk, timing, and amount of an entity's future cash flows are expected to change as a result of an economic transaction.

Fair Value

The capital retrieved from trading an asset or the expenditure for reallocating a liability in a well-arranged market transaction at the point of assessing value.