Question

A bank in Austin, Texas, has allowed its state banking license, under which it had been regulated by the Federal Deposit Insurance Corporation, a U.S. bank regulator, to expire. It has switched to a federal banking license, under which it is now regulated by the Office of the Comptroller of the Currency, another bank regulator. Do these regulators subject the bank to social or economic regulation?

Short answer

Banks are an indispensable piece of the economy of the country. They manage stores, exchanges, credits, monetary forms and monetary resources.

Step-by-step solution

Given Information

They as a rule assume different parts in the development of an economy. Assuming the financial area is solid and working ideally, that guarantees great wellbeing for the economy as well. By managing the financial area, the public authority has some control over the ways of behaving of the economic specialists of the nation and channelizes them in an ideal heading.

Explanation Part (1)

They as a rule assume different parts in the development of an economy. Assuming the financial area is solid and working ideally, that guarantees great wellbeing for the economy as well. By managing the financial area, the public authority has some control over the ways of behaving of the economic specialists of the nation and channelize them in an ideal heading

Explanation Part (2)

This multitude of measures is to adjust the economic way of behaving of the specialists of the general public, thusly can be called economic guideline. Thusly, controllers apply economic guidelines over the bank of Austin, Texas to screen and move the economic ways of behaving of the specialists of the economy.