Banking and Financial Institutions Quiz

A bank accepts deposits from the public, creates demand deposits, and makes loans, thus playing an important role in financial stability and the economy of a country.

Banking in its modern sense evolved in the fourteenth century in Renaissance Italy, but it functioned as a continuation of credit and lending concepts from the ancient world.

Fractional-reserve banking is a system under which banks hold liquid assets equal to only a portion of their current liabilities.

<p>The oldest existing retail bank is Banca Monte dei Paschi di Siena (founded in 1472), and the oldest existing merchant bank is Berenberg Bank (founded in 1590).</p> Signup and view all the answers

<p>The Basel Accords are an international set of capital standards that impose minimum capital requirements and regulations to ensure liquidity for banks.</p> Signup and view all the answers

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