Question

Why would a business choose a state bank over a national bank?

(1 point)
Responses

Local banks are required to be FDIC insured.

Local banks are required to be FDIC insured.

The business plans to expand into other regions.

The business plans to expand into other regions.

The business works with a lot of local customers.

The business works with a lot of local customers.

Local banks usually have the lowest interest rates.

Answer 1

A business might choose a state bank over a national bank primarily because **the business works with a lot of local customers**. State banks often have a better understanding of the local market and can provide personalized service, which can be beneficial for businesses that rely heavily on local clientele.