Which of the Following Statements Regarding the Interstate Banking and Branching

question 98

Multiple Choice

Which of the following statements regarding the Interstate Banking and Branching Act (IBBEA) of 1994 is false?

• A)It eliminates virtually all restrictions on interstate bank mergers.
• B)It makes interstate branching possible.
• C)It effectively repealed the McFadden Act of 1927.
• D)It allows banks to use a branch to generate deposits without considering the implications of the Community Reinvestment Act.

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Definitions:

Present Value

The present value of an expected amount of money or sequence of cash flows, with a given return rate.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money they borrow from a lender.

Consumption

The process by which goods and services are used up or consumed by individuals or groups, typically leading to satisfaction of needs or wants.

Endowment

The total resources available to an individual or economy, including natural, human, and physical assets.