Which of the following bank products is NOT subject to the disclosure provisions of the Interagency Statement on Retail Sales of Nondeposit Investment
Products?
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A. B. C. D.C
The Interagency Statement on Retail Sales of Nondeposit Investment Products is a regulatory guidance document issued by various US banking agencies, including the Federal Reserve, FDIC, OCC, and NCUA. It outlines the standards and requirements that banks must follow when offering nondeposit investment products to their retail customers. These products may include mutual funds, annuities, stocks, bonds, and other securities.
The statement requires banks to provide clear and concise disclosures to their customers about the risks and benefits of these investment products, as well as any fees or commissions associated with their sale. The disclosure requirements apply to most nondeposit investment products sold to retail customers, but there are some exceptions.
To answer the question, we need to identify which of the listed bank products is NOT subject to the disclosure provisions of the Interagency Statement on Retail Sales of Nondeposit Investment Products. Let's consider each option:
A. Fixed-rate annuities: These are insurance products that provide a guaranteed fixed rate of return for a specific period of time. They are considered nondeposit investment products and are subject to the disclosure requirements of the Interagency Statement.
B. Variable-rate annuities: These are similar to fixed-rate annuities but their returns vary depending on the performance of the underlying investment portfolio. They are also considered nondeposit investment products and are subject to the disclosure requirements of the Interagency Statement.
C. Variable-rate savings accounts: These are savings accounts that offer a variable interest rate that may change over time. While they are not typically considered nondeposit investment products, they may still be subject to the disclosure requirements if they are marketed as an investment product or if they offer investment options such as mutual funds.
D. Mutual funds: These are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They are considered nondeposit investment products and are subject to the disclosure requirements of the Interagency Statement.
Therefore, the answer to the question is C. Variable-rate savings accounts. While they may be subject to the disclosure requirements if they offer investment options or are marketed as an investment product, they are not automatically subject to the disclosure requirements simply because they offer a variable interest rate.