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Question 275

For which of the following business activities must a bank holding company obtain prior approval of the Federal Reserve Board?

    Correct Answer: D

    A bank holding company must obtain prior approval of the Federal Reserve Board before engaging in certain nonbanking activities. Selling installment loan data processing is considered a nonbanking activity, thus requiring prior approval.

Discussion
Cam22Option: D

Bank holding companies must obtain prior approval from the Federal Reserve Board for engaging in certain business activities, particularly those that are considered nonbanking activities. Selling installment loan data processing is an example of a nonbanking activity that would require prior approval.