Ultimate access to all questions.
Explanation:
d) is TRUE. Lifeline banking revolves around providing access to basic, low-cost financial services to low-income, unbanked, or underbanked individuals, and whether banks have a social or regulatory obligation to do so.
a) is FALSE. Historically and consistently, studies show that convenience (such as branch locations, ATM access, and digital banking convenience) is the most important factor for retail customers when choosing a bank, rather than just the interest rates. b) is FALSE. Deposit insurance (such as FDIC in the US) compensates the depositor (customer) if the bank fails. It does not compensate the bank for sudden withdrawals. c) is FALSE. The Truth in Savings Act requires clear, uniform disclosures of terms and interest rates before an account is opened, and it applies to both transaction and non-transaction consumer deposit accounts.
No comments yet.
20.13.3. Banks that offer deposit accounts face several challenges on several fronts, including those related to deposit insurance, disclosures, overdraft protection and basic (lifeline) banking. In this regard, which of the following statements is TRUE?
A
Interest rates are the most important factor that customers consider when choosing an institution to hold their deposit accounts
B
Deposit insurance compensates the bank for a sudden, unexpected withdrawal by the customer but requires the bank to pay higher interest rates
C
The Truth in Savings Act applies only after an account has been opened and does not apply to transaction deposit accounts (ie., only to non-transaction accounts)
D
Lifeline banking is a controversial social issue that asks whether banks should be obligated to offer certain basic banking services to the unbanked and underbanked