General License

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Multiple Choice

General License

A general license provides pre-approved permission to engage in a broad category of transactions without needing to obtain a separate license for each one. Regulators issue these to streamline compliance and allow routine activities to proceed, as long as the transactions fit the defined category and meet any stated conditions. This is why it best matches the concept: it authorizes a class of transactions without individual applications. In contrast, requiring a formal application for each transaction describes a specific license, not a general one. Banning transactions describes a prohibition, not a license. And general licenses can apply to international activity as well, so limiting them to domestic transactions is not accurate.

A general license provides pre-approved permission to engage in a broad category of transactions without needing to obtain a separate license for each one. Regulators issue these to streamline compliance and allow routine activities to proceed, as long as the transactions fit the defined category and meet any stated conditions. This is why it best matches the concept: it authorizes a class of transactions without individual applications.

In contrast, requiring a formal application for each transaction describes a specific license, not a general one. Banning transactions describes a prohibition, not a license. And general licenses can apply to international activity as well, so limiting them to domestic transactions is not accurate.

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