Question

1. Which of the following is an accurate description of a dual banking system?

a. Government protection from losses may occur if a bank becomes insolvent or fails.

b. The government grants charters to banks.

c. Government permission is needed to establish and operate a depository institution.

d. There exists a system in which bank charters are granted by both the government and private licensing organizations.

2. Which of the following most accurately explains why the bank chartering system of the United States is known as the reason for a dual banking system?

a. Banks do not disclose to whom they have made loans and for how much.

b. There exists a system in which bank charters are granted by both the government and private licensing organizations.

c. The government grants charters to banks.

d. Society cannot allow just anyone to open a bank because banks have a lot of proprietary information.

Answer 1