21-90 Concern About the Financial Impact of an Extension of the Federal

question 78

Multiple Choice

21-90 Concern about the financial impact of an extension of the federal safety net has been used to justify product segmentation on the grounds of

• A)safety and soundness issues.
• B)economy of scale and scope issues.
• C)conflict of interest issues.
• D)deposit insurance issues.
• E)regulatory oversight issues.

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Definitions:

Unearned Sales Revenues

Money received by a company for products or services yet to be delivered or performed, considered a liability until earned.

Cash Collected

Revenue that has been received by a company from its various business activities, such as sales or services.

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.