In the above problem, the proposed new branch will _______ overall risk exposure and produce a(an) ______ effect. Fill in the appropriate answers.

• A)  increases; economies of scale 

        

• B)  increases; economies of scope

       

•   C)  reduces; convergence

        

• D)  reduces; geographic diversification

More recently the issue of public need has become an increasingly important factor in the granting of bank charters.

• True

• False

The total number of full-service branch offices has declined in the United States in recent years.

• True

• False

Bank branch offices are often specially configured today to maximize sales opportunities.

• True

• False

State banking commissions, on average, impose tougher standards for chartering new banks than the federal chartering agency, the Comptroller of the Currency.

• True

• False

To close a bank branch office in the United States a bank must give its customers 30 days advance notice.

• True

• False

Access to a P0S terminal is gained through the use of a credit card.

• True

• False

The FDIC Improvement Act of 1991 requires a bank closing one of its branches to give its customers a minimum notice of:

• 90 days

• 60 days

• 30 days

• 10 days

• None of the above

Most U.S. banks are chartered in urban areas.

• True

• False

Newly designed bank branch offices in recent years have emphasized more heavily effective communication of service options to the customer in an effort to promote service sales.

• True

• False