Final answer:
The statement that the dollar amount of a depository institution's assets on December 31 of the preceding year controls HMDA data collection is false. While asset size is a factor, HMDA coverage is determined by multiple criteria, not solely by year-end assets.
Step-by-step explanation:
The question as to whether the dollar amount of assets a depository institution has on December 31 of the preceding year controls HMDA data collection is false. The Home Mortgage Disclosure Act (HMDA) requires certain financial institutions to maintain, report, and publicly disclose loan-level information about mortgages. The regulation is aimed at providing the public with enough data to help show whether lenders are serving the housing needs of their communities; it gives public officials information that helps them make decisions and policies, and it sheds light on lending patterns that could be discriminatory.
The assets of a depository institution can affect its categorization under HMDA, but it is not the sole factor in data collection. For instance, the dollar thresholds for reporting can influence whether an institution is covered by HMDA, but other criteria also apply, such as the institution's location or the type of transaction.
Regarding the reference information provided, it suggests the need for understanding fundamental banking concepts such as reserves, loans, and bonds, which are types of assets that can be found on a bank's balance sheet. Setting up a T-account balance sheet involves listing these assets and comparing them to the bank's deposits and equity to determine the net worth.