Banking Activities Quiz
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Questions and Answers

What is the main activity of retail or commercial banking?

  • Making loans and taking deposits (correct)
  • Raising capital for large firms
  • Managing and overseeing portfolios
  • Administering pension funds
  • Which type of banking primarily involves raising capital, mergers and acquisitions, and accessing capital markets?

  • Asset management
  • Investment banking (correct)
  • Retail banking
  • Corporate banking
  • What is the main responsibility of asset management in the banking sector?

  • Taking deposits from individuals
  • Administering pension and mutual funds (correct)
  • Issuing shares to raise capital
  • Making loans to small and medium enterprises
  • Which type of bank performs activities related to loans, deposits, and consultancy for large firms and businesses?

    <p>Corporate banking</p> Signup and view all the answers

    What does a bank's balance sheet primarily include as assets?

    <p>Cash, reserves, loans, and other financial assets</p> Signup and view all the answers

    What term refers to the degree to which an asset can be converted into money at short notice without loss?

    <p>Liquidity</p> Signup and view all the answers

    According to the Fed, what does the term 'money supply' encompass?

    <p>Cash and coins in circulation</p> Signup and view all the answers

    What activity do banks engage in when they give out a loan of $10,000 to someone?

    <p>Creating an asset on their balance sheet</p> Signup and view all the answers

    Who typically manages and oversees portfolios in the banking sector?

    <p>High-net individuals and funds</p> Signup and view all the answers

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