Which of the Following Statements Is Correct

question 76

Multiple Choice

Which of the following statements is correct?

• A)Federal Reserve district banks are owned by the government.
• B)Member banks receive no return on the stock they own in Federal district banks.
• C)Federal Reserve district banks pay dividends on their earnings to member banks.
• D)The boards of directors of the district banks are all local bankers.

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Definitions:

Subsidiary

A company controlled by another company, often referred to as the parent company.

Acquisition

The process or act of obtaining control, possession, or ownership of a company or assets by purchasing or merging with it.

Consolidation

A combination of two or more businesses in which all of the old legal entities dissolve and a new one with a new name is formed to continue into the future.

Vertical Merger

A vertical merger occurs between two companies that operate at different levels within an industry's supply chain, typically aimed at increasing efficiencies or reducing costs.