Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the primary function of a bank?
What is the primary function of a bank?
- Investing in capital markets
- Issuing credit cards
- Providing insurance services
- Accepting deposits and making loans (correct)
What is fractional-reserve banking?
What is fractional-reserve banking?
- A system where banks hold liquid assets exceeding their liabilities
- A system where banks hold liquid assets equal to all of their liabilities
- A system where banks hold liquid assets equal to only a portion of their liabilities (correct)
- A system where banks do not hold any liquid assets
What are banks generally subject to in order to ensure stability?
What are banks generally subject to in order to ensure stability?
- Minimum capital requirements based on international standards (correct)
- Maximum capital requirements based on national standards
- Regulations on profit margins
- No capital requirements
Where did banking in its modern sense evolve?
Where did banking in its modern sense evolve?
Signup and view all the answers
What is the oldest existing retail bank?
What is the oldest existing retail bank?
Signup and view all the answers
