One of the benefits of securing a state charter instead of a federal charter for a bank is that:
A)it brings added prestige.
B)it results in the automatic receipt of federal deposit insurance.
C)it is often able to lend a higher percentage of its capital to a single borrower.
D)state laws can pre-empt federal laws.
E)None of the options are correct.

Question

Quizplus · Accepted Answer

With a state charter, a bank can often lend a higher percentage of its capital to a single borrower than it would be able to with a federal charter. This is because state regulations may be less stringent than federal regulations in this regard.

One of the Benefits of Securing a State Charter Instead