The Phrase Dual Banking System Refers to

question 48

Multiple Choice

The phrase dual banking system refers to

• A)the system whereby bank holding companies are allowed to have branches in more than one state.
• B)the system whereby depository institutions are regulated by at least two federal financial regulatory agencies.
• C)the system whereby banks may have either a national or a state charter.
• D)None of the above is correct.

---

Definitions:

Present Value Factor

A coefficient used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.

Cash Flows

The net amount of cash being transferred into and out of a business, illustrating its ability to generate and use cash.

Incremental Analysis

An examination of the additional benefits and costs of certain business decisions.

Fixed Overhead

Regular, unchanged costs incurred by a business in its operation, such as rent, salaries, and utilities, which do not vary with the level of production or sales.