A Bank That Is Authorized to Accept Deposits of Amounts

question 62

Multiple Choice

A bank that is authorized to accept deposits of amounts payable to the federal government is a:

• A) Credit union.
• B) FDIC insured bank.
• C) Federal depository bank.
• D) National bank.
• E) Federal Reserve Bank.

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Definitions:

Common Stock

Equity securities that represent ownership shares in a corporation, giving holders voting rights and potential dividends but with no fixed dividend rate.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis, as a reward for investing in the company.

Convertible Preferred Stock

A type of preferred stock that gives holders the option to convert their preferred shares into a fixed number of common shares, generally after a predetermined date.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and the potential for dividend payments.