What does it mean to say that all commercial banks are chartered? A)

QUESTION

What does it mean to say that all commercial banks are chartered?

A) They are not Fed members.
B) All of their accounts are considered within the money supply by M1’s definition.
C) They have received government permission to operate.
D) They belong to a group of other local banks that pool funds.
E) Their deposits are not insured by the FDIC.

ANSWER

Answer: C
Explanation: C) All chartered banks have received government (federal or state) permission to operate.