Which of the Following Is a Reason That Many States

question 84

Multiple Choice

Which of the following is a reason that many states and the federal government finally enact interstate banking laws?

• A)The need for new capital in order to revive struggling local economies
• B)The expansion of service offerings by nonbank financial institutions
• C)The belief among regulators that larger firms may be more efficient and stable
• D)Advances in technology which allowed banks to service customers in broader geographic areas
• E)All the options are reasons for the passage of interstate banking laws

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Definitions:

Payables Financing

A form of short-term borrowing where a company finances its accounts payables through a third party.

Prompt Payment Discount

A discount offered to buyers for paying their invoices early, encouraging faster payments.

Pledged

Assets or collateral that a borrower offers to a lender to secure a loan, which the lender may seize if the loan is not repaid.

Default Risk

The risk of loss to a lender from the borrower’s failure to pay the full amount due including interest and principal.