An agreement to allow competition from certain geographic areas, usually in return for the ability to compete within those areas, is
A)a federal charter.
B)an integrated agreement.
C)a holding company agreement.
D)an interstate banking pact.
E)a state charter.

Question

Quizplus · Accepted Answer

The agreement described in the question is an interstate banking pact, which allows banks from different states to compete in each other's geographic areas in exchange for the ability to do the same in their own areas. Federal and state charters refer to the legal authority to operate as a bank, while an integrated agreement and holding company agreement are different types of corporate structures.

An Agreement to Allow Competition from Certain Geographic Areas, Usually