Many states prohibited bank branching because of all of the following except:
A) they feared the concentration and monopoly power of large banks.
B) they generated significant revenue from issuing bank charters.
C) they wanted to protect the profits of banks since they generated tax revenue from these profits.
D) the McFadden Act of 1927.

Question

Quizplus · Accepted Answer

The McFadden Act of 1927 primarily addressed national banks and their ability to branch, rather than being a reason states prohibited bank branching. It aimed to give national banks competitive equality with state-chartered banks by allowing them to branch to the extent permitted by state law for state banks. The other options (A, B, C) reflect concerns and motivations behind states' restrictions on bank branching, such as fear of concentration of power, revenue from bank charters, and protection of bank profits for tax revenue purposes.

Many States Prohibited Bank Branching Because of All of the Following