A group of six investors wants to open a new bank in the community of Edmond,Oklahoma.It has submitted the application to the Comptroller of the Currency.Which of the following would best describe the nature of the bank?
A)A state,member bank
B)A state,insured bank
C)A national bank
D)A national bank without FDIC insurance
E)None of the options are correct

Question

Quizplus · Accepted Answer

The fact that the investors have submitted an application to the Comptroller of the Currency suggests that they are seeking to open a national bank, which is regulated by the OCC. National banks are chartered by the federal government and can operate in multiple states. They are also eligible for FDIC insurance, which provides depositors with protection against bank failure. A state member bank would be a bank that is chartered by a state and is also a member of the Federal Reserve System. A state-insured bank would be a bank that is chartered by a state and participates in a state-run deposit insurance program. A national bank without FDIC insurance would not be possible, as all national banks are eligible for FDIC insurance.

A Group of Six Investors Wants to Open a New