Question

The McFadden Act of 1927:_________. a. required that banks maintain bank capital equal to at least 6 percent of their assets. b. effectively required that banks maintain a correspondent relationship with large money center banks. c. effectively prohibited banks from branching across state lines. d. did all of the answers.

Answer 1

Answer:

Option C is correct.

Explanation:

The McFadden Act which was passed by Congress in 1927 refers to a Federal legislation which ensured that authority was given to individual states to govern the bank branches that were located within the state.

The legislation also included national bank branches that were located within state lines.

This act was passed with the intention of allowing the national banks to compete with state banks by allowing them to open bank branches within state limitations.