Which of the Following Is Primarily Used as Collateral for Borrowings

question 31

Multiple Choice

Which of the following is primarily used as collateral for borrowings from the Federal Home Loan Bank Board?

• A) Real estate loans
• B) Treasury securities
• C) Negotiable CDs
• D) Credit card receivables
• E) Repurchase agreement

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Definitions:

Accounting Functions

The systematic process of recording, analyzing, summarizing, and reporting the financial transactions of a business.

Collateral

Assets pledged by a borrower to secure a loan or other credit, ensuring the lender can seize these assets if the borrower fails to repay.

C-Corporation

A C-Corporation is a business structure where the owners or shareholders are taxed separately from the entity, which is recognized as a legal entity under U.S. law.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels, such as corporate earnings and shareholder dividends.