An Edge Act Corporation is:
A) a company created so a U.S. bank can operate in more than one state.
B) a subsidiary of a bank created to provide insurance and securities services.
C) a company created by a non-bank corporation used to purchase and operate banks.
D) a subsidiary of a domestic bank that is established specifically to engage in international banking transactions.

Question

Quizplus · Accepted Answer

An Edge Act Corporation is a subsidiary of a domestic bank that is established specifically to engage in international banking transactions. It is authorized by the Edge Act of 1919, which allows U.S. banks to conduct foreign banking activities through separate subsidiaries. The purpose of an Edge Act Corporation is to facilitate international trade and commerce by providing financing, credit, and other services to businesses engaged in foreign operations.

An Edge Act Corporation Is