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How are the supervisory reviews of a bank conducted?
AOnce every five years, with a year of notice given
BAt least once a year, during unannounced visits
COnly when depositors complain about the bank
DContinuously, by staff placed inside each branch
Answer & Solution
Correct answer: B. At least once a year, during unannounced visits
1. The supervisor sets guidelines for banks and then reviews their financial records and management practices.
2. Those reviews take place at least once a year.
3. Bank examiners perform them during unannounced visits.
4. Surprise matters, because advance notice would let a bank arrange its affairs before the examiner arrived.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.4 Insuring Bank Deposits_
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