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Question
A bank holding company has a banking affiliate and a securities affiliate. If the securities affiliate fails, it could cause the bank to also fail because
A. the bank holding company could use funds from the banking affiliate to provide funds to the securities affiliate by downstreaming.
B. the bank holding company could use funds from the banking affiliate to provide funds to the securities affiliate by upstreaming.
C. the bank holding company could induce the banking affiliate to make loans to the securities affiliate.
D. Answers A and C only.
E. Answers B and C only.
Answer
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