16-74 Which of the Following Statements Is NOT True

question 46

Multiple Choice

16-74 Which of the following statements is NOT true?

• A)The Federal Reserve operates the Fedwire electronic payments system while CHIPS is a private network.
• B)Fedwire is used to transfer funds from the Fed to the banking system while CHIPS is used to make interbank funds transfers.
• C)The Fed guarantees all payments on Fedwire while CHIPS transfers are provisional until settlement.
• D)Large daylight overdrafts are incurred on both Fedwire and CHIPS.
• E)Neither Fedwire nor CHIPS charges interest or fees for daylight overdrafts.

---

Definitions:

Economic Benefit

The advantage or gain derived from an economic action or activity such as investments, consumption of goods, and services.

Trading Range

The range within which a security or a market index fluctuates over a specified period.

EPS

Earnings Per Share, a financial ratio that measures the amount of profit attributed to each outstanding share of a company's common stock, indicating the company's profitability.

Dividends

Distributions issued to shareholders by a company, typically sourced from the organization's earnings.