Which of the Following Is an Advantage of Forming a Bank

question 23

Multiple Choice

Which of the following is an advantage of forming a bank holding company?

• A) It allows ownership of several banks where branching is prohibited.
• B) It allows owners to engage in activities related to banking that are prohibited to banks.
• C) Both A and B of the above.
• D) None of the above.

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Definitions:

Initial Endowment

Refers to the initial allocation of goods, resources, or wealth that an individual or entity possesses before any transactions.

Pareto Efficient

A situation where no individual or preference criterion can be better off without making at least one individual or preference criterion worse off.

Initial Endowment

The initial allocation of resources, money, or goods that an individual, institution, or country possesses.

Pareto Optimal

An allocation of resources from which it is impossible to reallocate to make any one individual better off without making at least one individual worse off.