1. Bank regulation in the United States
Which of the following is an accurate description of bank charter?
a. Government permission is needed to establish and operate a depository institution.
b. There exists a system in which bank charters are granted by both the government and private licensing organizations.
c. Society cannot allow just anyone to open a bank because banks have a lot of proprietary information.
d. Government protection from losses may occur if a bank becomes insolvent or fails.
2. Which of the following most accurately explains the need for bank charters?
a. Society cannot allow just anyone to open a bank because banks have a lot of proprietary information.
b. Government permission is needed to establish and operate a depository institution.
c. Banks do not disclose to whom they have made loans and for how much.
d. The government grants charters to banks.