Final answer:
Banks dealing in securities must be registered under The Securities Exchange Act of 1934 and be a member of FINRA, making option C the correct answer. The Federal Reserve and the SEC regulate financial markets, while FDIC provides deposit insurance.
Step-by-step explanation:
Banks with accounts in exempt and non-exempt securities must be registered under The Securities Exchange Act of 1934; and be a member of FINRA. The correct answer to the provided question is option C) The Securities Exchange Act of 1934; FINRA.
The Securities Exchange Act of 1934 is essential for regulating the secondary trading of securities (stocks, bonds, and debentures) and requires registration of exchanges, broker-dealers, and others in the trading market, including banks dealing with securities. Furthermore, the Financial Industry Regulatory Authority (FINRA) is the largest self-regulatory organization which regulates member brokerage firms and exchange markets.
The Federal Reserve has responsibilities in supervising financial institutions, and along with the Securities and Exchange Commission (SEC), plays a crucial role in the oversight of Wall Street. Additionally, the Federal Deposit Insurance Corporation (FDIC) is responsible for providing deposit insurance which boosts confidence in the banking system. However, FDIC membership does not relate to securities registration requirements outlined in the Securities Exchange Act of 1934.