Today, the Primary Motivation Behind Forming a Bank Holding Company

question 36

Multiple Choice

Today, the primary motivation behind forming a bank holding company is:

• A) to reduce competition.
• B) the ability to circumvent restrictions on branching.
• C) to broaden the scope of products the bank can offer.
• D) to increase deposit concentration.
• E) All of the above are motivating factors today for forming a bank holding company.

---

Definitions:

Intended Beneficiary

An intended beneficiary is a person or entity that, although not a direct party to a contract, stands to benefit from the contract's performance as intended by the involved parties.

Creditor Beneficiary

A third party that benefits from a contract, specifically where one party promises to pay a debt owed by another party to this third party.

Donee Beneficiary

A third party that benefits from a contract wherein the promisor agrees to give a gift or confer a benefit directly to the third party.

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts and property law.