The fact that banks can be either nationally or state chartered creates:
A) situations where some banks go unregulated.
B) situations where banks operating in more than one state can escape regulation.
C) regulatory competition.
D) banks being simultaneously regulated by more than one agency.

Question

Quizplus · Accepted Answer

The fact that banks can be either nationally or state chartered creates regulatory competition. This means that banks can choose to be regulated by either a state or federal agency, which may lead to differences in regulations and requirements. As a result, the competition between regulatory bodies creates a more efficient and responsive regulatory environment as banks may opt for the less stringent regulatory framework. It also ensures that banks are subject to a degree of regulatory scrutiny, regardless of their size or location. Option A, B, and D are incorrect as they do not accurately describe the impact of chartering on regulatory oversight.

The Fact That Banks Can Be Either Nationally or State