Technological advances and the ability to access a nationwide market from one location allowed the growth of Industrial Loan Corporations (ILCs) during the 1990s and illustrate competitive risks of other FIs.Which of the following is true of ILCs?
A)They can only operate within the state where they are established.
B)They are regulated by the Federal Reserve.
C)The deposits of ILCs are insured by the FDIC.
D)ILCs are subsidiaries of traditional commercial banks.
E)Oversight of ILCs is provided by the Office of the Comptroller of the Currency.

Question

Quizplus · Accepted Answer

Industrial Loan Corporations (ILCs) have the ability to offer FDIC-insured deposits to customers, making choice C true. Choice A is false because ILCs have the ability to operate across state lines. Choice B is false because ILCs are not regulated by the Federal Reserve but rather by the FDIC and state banking regulators. Choice D is false because ILCs are not subsidiaries of traditional commercial banks but rather standalone institutions. Choice E is false because oversight of ILCs is provided by state banking regulators, not the Office of the Comptroller of the Currency.

Technological Advances and the Ability to Access a Nationwide Market