Podcast
Questions and Answers
What is fractional-reserve banking?
What is fractional-reserve banking?
- A system where banks hold liquid assets equal to more than their current liabilities
- A system where banks do not hold any liquid assets
- A system where banks hold liquid assets equal to only a portion of their current liabilities (correct)
- A system where banks hold liquid assets equal to all of their current liabilities
When did banking in its modern sense evolve?
When did banking in its modern sense evolve?
- Seventeenth century in France
- Fourteenth century in Renaissance Italy (correct)
- Fifteenth century in Spain
- Eighteenth century in England
What are the Basel Accords?
What are the Basel Accords?
- A system of taxation for financial institutions
- A global organization for economic development
- An international set of capital standards for banks (correct)
- A regulatory body for stock markets
Which is the oldest existing retail bank?
Which is the oldest existing retail bank?
What is the role of most banking dynasties mentioned in the text?
What is the role of most banking dynasties mentioned in the text?
Flashcards
Fractional-reserve banking
Fractional-reserve banking
A banking system in which banks are required to keep only a fraction of their deposits in reserve as liquid assets.
Basel Accords
Basel Accords
An international set of capital standards that dictate how much capital banks must hold to buffer themselves against financial and operational risks.
Evolution of modern banking
Evolution of modern banking
Banking in its modern sense emerged in Italy during the Renaissance. It was shaped by the powerful banking families.
Banca Monte dei Paschi di Siena
Banca Monte dei Paschi di Siena
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Role of banking dynasties
Role of banking dynasties
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