Bank Holding Companies and Financial Holding Companies Generally Do Not

Question 13
Multiple Choice

Bank holding companies and financial holding companies generally do not pay income tax because: A)they are always chartered as non-profit corporations. B)most of their income is subsidiary paid dividends, of which 80% is tax-exempt. C)the subsidiaries always operate at a net loss. D)bank holding companies must carry deposit insurance. E)bank holding companies are not subject to Internal Revenue Service regulations.