The Fed

question 65

Multiple Choice

The Fed

• A) can examine the books of a member bank without warning.
• B) can examine the books of a member bank after giving advance notice.
• C) can examine the books of a member bank with the bank's permission.
• D) is never allowed to see the books of a privately owned bank.

---

Definitions:

Trade or Business

Regular, continuous, and substantial activities engaged in by an entity to generate income or profit.

FMV

Fair Market Value; the price an asset would sell for on the open market under current conditions.

Donor's Adjusted Basis

The amount used in determining capital gain or loss for the donor, typically the cost basis adjusted for various factors like improvements or depreciation.

Ordinary Gains

Ordinary gains refer to earnings from the sale of assets or property that are not classified under capital gains and are subject to the taxpayer's normal income tax rate.