One of the Benefits of Applying for a Federal (National)bank

question 43

Multiple Choice

One of the benefits of applying for a federal (national) bank charter over a state charter is that:

• A)it brings added prestige.
• B)it results in the automatic receipt of federal deposit insurance.
• C)there is better technical support in times of trouble.
• D)it brings added prestige and better technical support in times of trouble.
• E)All of the options are correct

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Definitions:

Payment

The act of transferring money or other valuable items in exchange for goods, services, or to fulfill a contractual obligation.

Compounded Semi-annually

Refers to the process where the interest earned on an investment is calculated and added to the principal amount every six months.

GIC

A Guaranteed Investment Certificate, particular to the Canadian market, ensures investors a promised rate of return within a set duration.

Semi-annual Interest

Interest that is calculated and paid twice a year on an investment or loan.