Which of the following is a TRUE statement concerning bank holding companies?
A)Bank holding companies own few large banks.
B)Bank holding companies have experienced dramatic growth in the past three decades.
C)The McFadden Act has prevented bank holding companies from establishing branch banks.
D)Bank holding companies can own only banks.

Question

Quizplus · Accepted Answer

Bank holding companies have experienced significant growth in the past three decades, with many of them owning multiple banks and subsidiaries. The McFadden Act, which was enacted in 1927, limited the ability of national banks to establish branches but did not restrict the expansion of bank holding companies. Therefore, choice C is incorrect. As for choice A, while some bank holding companies may own only a few large banks, others may own a diversified set of smaller institutions. Therefore, it is not a universally true statement. Lastly, bank holding companies are allowed to own other financial entities, such as insurance companies and investment firms. Thus, choice D is also incorrect.

Which of the Following Is a TRUE Statement Concerning Bank