6 Bank regulation in the United Staters h ot he celoatngb O

6. Bank regulation in the United Staters h ot he celoatngb O Government protection from losses may occur if a bank becomes insolvent or fails. O The government grants charters to banks. O Government permission is needed to establish and operate a depository institution O There exists a system in which bank charters are granted by both the government and private licensing organizations. 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? O The government grants charters to banks. O There exists s system in which bank charters are O Banks do not disclose to whom they have made loans and for how much. O society cannot allow just anyone to open a bank because banka have a lot of proprietary information. granted by both the government and private licensing organizations .

Solution

Answer : 6) 1) The option d is correct.

Because the \"dual banking system\" depicts that two banks grant the bank charters where one is national bank which is known as government organization and another one is state bank which is known as private organization.

2) The correct option is b.

In U.S. as two banks : national bank or government organization and state bank or private organization both of them grants bank charters like a system, hence the system is known as \"dual banking system\".