State-chartered banks
A) automatically receive membership in the Federal Reserve System.
B) are prohibited from membership in the Federal Reserve System.
C) may be permitted to join the Federal Reserve system, given a satisfactory financial condition.
D) can be Fed members if sponsored by an existing member bank.

Question

Quizplus · Accepted Answer

State-chartered banks may be permitted to join the Federal Reserve system, given a satisfactory financial condition. Membership is not automatic and requires an application process and approval by the Board of Governors.

State-Chartered Banks