Which of the following is true regarding bank charters?

Select one:

A. All U.S. commercial banks must be chartered in order to operate.

B. All U.S. banks must be federally chartered.

C. National banks are chartered by the Federal Reserve.

D. All of the above.

Which of the following is characteristic of fractional reserve banking?

Select one:

A. Restricting the access of depositors to money in their passbook savings accounts.

B. Maintaining sufficient bank reserves to cover all outstanding loans.

C. Making only long-term loans to both consumers and businesses.

D. None of the above.

Please explain why the correct is the correct one.