What is a state-chartered bank?

A. A nonprofit state-run service that accepts deposits, makes loans, and provides

other financial services

B. A bank that receives its charter from the state in which it operates

C. A bank in which all of the shareholders are residents of the state in which it

operates

D. A bank in which all of a state's residents are shareholders

Question

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Kelton Jarvis

12 December, 06:56

What is a state-chartered bank?

A. A nonprofit state-run service that accepts deposits, makes loans, and provides

other financial services

B. A bank that receives its charter from the state in which it operates

C. A bank in which all of the shareholders are residents of the state in which it

operates

D. A bank in which all of a state's residents are shareholders

+2

Answers (1)

Know the Answer?

Brenna Zhang · Answer 1

B. A bank that receives its charter from the state in which it operates

Explanation:

This type of banks usually operate in one state, where they received their charter. They may apply or not to be a member bank in the Federal Reserve system. If they don't, they operate only in their state and its regulated by state banking authorities.