21-84 Which Action of the Holding Company to Help Its

question 46

Multiple Choice

21-84 Which action of the holding company to help its securities affiliate can damage the financial health of its banking subsidiary?

• A)Downstreaming funds from the subsidiary and then upstreaming it to the securities affiliate.
• B)Upstreaming funds from the securities affiliate and then downstreaming it to the bank subsidiary.
• C)Indulging in product diversification.
• D)Upstreaming funds from the bank subsidiary and then downstreaming it to the securities affiliate.
• E)Diversifying the earnings stream of a banking company geographically.

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Definitions:

Unionized Workers

Workers belonging to a labor union that advocates for their rights in discussions with employers.

Avoid Dealing

The practice of not engaging or communicating with certain parties or issues, often as a strategy to prevent conflict or because the topics are deemed unsolvable or too sensitive.

Norris-LaGuardia Act

A 1932 U.S. federal law that restricted employers' power to prevent unionization and limited the issuance of injunctions in labor disputes.

Federal Courts

Courts established by the federal government of a country, in the United States, for instance, they have the authority to rule on legal disputes based on constitutional and federal law.