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Which of the Following Practices Is Authorized by the Federal

Question 337

Multiple Choice

Which of the following practices is authorized by the Federal Reserve Act?


A) An agreement by a bank that it is responsible for the obligations of its subsidiary
B) A bank's purchase, in its fiduciary capacity, of the affiliate's assets if the fiduciary instrument allows for such a purchase
C) The sale of a nonaccruing loan from a bank to its bank affiliate
D) The acceptance of an affiliate's securities of an affiliate as collateral for a NOTES bank's loan from the bank to the affiliate

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