13-93 Which of the Following Observations Is NOT True

question 30

Multiple Choice

13-93 Which of the following observations is NOT true?

• A)The settlement risk that an FI is exposed to within-day appears on its balance sheet.
• B)Settlement Risk is a form of OBS risk that FIs participating on private wholesale wire transfer system networks face.
• C)A holding company is a corporation that owns more than 25 percent of the shares of other corporations.
• D)Failure of an affiliated firm or bank imposes affiliate risk on another bank in a holding company structure in a number of ways.
• E)Investors do not distinguish between the failing corporation and its surviving affiliate because of name similarity.

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Definitions:

Momentary Physical Interaction

A brief, physical contact or encounter between individuals or objects.

Egoistic

Pertaining to or thinking only of oneself, without regard for the feelings or desires of others; self-centered.

Friendship

A mutual bond between two or more individuals, characterized by affection, respect, loyalty, and healthy communication.

School Phobia

An intense fear or anxiety related to attending school, often leading to significant school avoidance.