The Holding-Company Device to Control Two or More Commercial Banks

question 127

Multiple Choice

The holding-company device to control two or more commercial banks:

• A)has diminished in importance in recent years
• B)has increased in importance in recent years
• C)is limited to state chartered banks
• D)is sometimes described as chain banking

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Definitions:

System Justification Theory

A theory suggesting that people have a psychological tendency to defend, uphold, and justify the status quo, even at the expense of personal or group interest.

Illegitimate System

A system or structure of authority that is not recognized as lawful or officially justified.

Unstable System

A system that lacks equilibrium or consistency, characterized by frequent changes or unpredictability.

Isolated

Being separated from others or feeling alone and disconnected from a social or physical environment.