a small town has a local bank that has been in business for over 50 years. is this bank required to join the…

a small town has a local bank that has been in business for over 50 years. is this bank required to join the federal reserve system? (1 point) no, only national banks are required to join. yes, if has accounts with more than $250,000 in them. yes, banks that are not part of the fed cannot accept deposits. no, it has been in business so long that joining the fed is not required.

a small town has a local bank that has been in business for over 50 years. is this bank required to join the federal reserve system? (1 point) no, only national banks are required to join. yes, if has accounts with more than $250,000 in them. yes, banks that are not part of the fed cannot accept deposits. no, it has been in business so long that joining the fed is not required.

Answer

Brief Explanations:

National banks are mandated to join the Federal Reserve System. State - chartered banks (which a local bank in a small town is likely to be) are not required to join. The length of business operation (over 50 years in this case) is not a factor in the requirement. Also, the deposit amount ($250,000) is related to FDIC insurance, not Fed membership. And non - Fed banks can accept deposits.

Answer:

No, only national banks are required to join.