Banks must meet certain requirements before they receive a charter, or permission to operate from authorities, because
A) bankers can't be trusted.
B) they own lots of money.
C) they control the companies to which they make loans.
D) there are thousands of them in the United States.
E) they deal with money belonging to other individuals and firms.

Question

Quizplus · Accepted Answer

Banks deal with money belonging to other individuals and firms, which makes them a high-risk industry. Therefore, they must meet certain requirements before receiving a charter from authorities to operate. This includes ensuring they have sufficient capital reserves, following strict regulatory guidelines, and complying with anti-money laundering laws.

Banks Must Meet Certain Requirements Before They Receive a Charter