Which of the Following Statements Is Incorrect

question 28

Multiple Choice

Which of the following statements is incorrect?

• A)A mutual-to-stock conversion allows savings institutions to obtain additional capital by issuing stock.
• B)Because of the difference in owner control, mutual savings institutions are more susceptible to unfriendly takeovers.
• C)When a mutual savings institution is involved in an acquisition, it first converts to a stock-owned savings institution.
• D)Consolidation and acquisitions have caused the number of mutual and stock savings institutions to decline consistently over the years.

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Definitions:

T-Bill

A short-term government debt obligation backed by the Treasury Department of a country with a maturity of less than one year.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual rate.

Holding Period

The length of time an investment is held by an investor before being sold.

Student Loans

Financial borrowings specifically designed to cover educational expenses, often subject to different terms and conditions than other loan types.