Question

The McFadden Act of 1927 Select one: a. required that banks maintain bank capital equal to at least 6 percent of their assets. b. effectively prohibited banks from branching across state lines. c. separated the commercial banks and investment banks. d. effectively required that banks maintain a correspondent relationship with large money center banks.

Answer 1

B) effectively prohibited banks from branching across state lines.

Step-by-step explanation:

The McFadden Act of 1927 can be regarded as a piece of federal legislation which grant authority to

individual states to govern bank branches that is been located within the state. This also encompass branches of national banks that is been located within state lines.This acts gives room for national bank to operate branches as it is been permitted by state governments.

It should be noted The McFadden Act of 1927 effectively prohibited banks from branching across state lines.