What is the defining characteristic of the dual banking system? A. Control of nationally chartered and state-chartered banks by the state regulators. B. Coexistence of parent and holding companies. C. Nonbanking companies carrying out both banking and other activities. D. Control of nationally chartered banks by both FRS and State bank regulators. E. Coexistence of both nationally chartered and state-chartered banks. If a stock portfolio replicates the returns on a stock market index, the beta of the portfolio will be A. less than one B. equal to one C. greater than one D. equal to zero E. negative National-chartered commercial banks are most likely to be regulated by A. B. C. D. E. the Federal Reserve System only. the FDIC only. the Federal Reserve System and the Comptroller of the Currency. E the FDIC, the Federal Reserve System, and the Comptroller of the Currency. the FDIC and the Federal Reserve System. A disadvantage of using stored liquidity management to manage a FI's liquidity risk is A. B. C. D. E. the accessibility of international money markets. the high cost of purchased liabilities. the resulting shrinkage of the FI's balance sheet. loss of flexibility as a result of dependence upon purchased liabilities. tax considerations