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.

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.