Banks are prohibited from holding __________ in their portfolio of assets.

Name: Banks are prohibited from holding __________ in their portfolio of assets.
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Question

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Banks are prohibited from holding corporate stock in their portfolio of assets. This is because ownership of stock would create conflicts of interest and potentially put depositors' funds at risk. Banks are allowed to hold the other options listed (commercial paper, local government securities, and farm mortgages) in their portfolio of assets.

Banks Are Prohibited from Holding __________ in Their Portfolio of Assets