Banking and Financial Institutions Quiz
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Questions and Answers

What is the main function of a bank?

  • Offering tax advisory services
  • Issuing stock options
  • Accepting deposits and making loans (correct)
  • Providing insurance services

    • What is fractional-reserve banking?

  • A system where banks hold liquid assets equal to only a portion of their current liabilities (correct)
  • A system where banks hold liquid assets greater than their current liabilities
  • A system where banks hold liquid assets equal to all of their current liabilities
  • A system where banks do not hold any liquid assets

    • What are banks generally subject to in order to ensure liquidity?

  • Maximum withdrawal limits
  • Minimum capital requirements (correct)
  • Interest rate controls
  • Credit score regulations

    • In which century did banking in its modern sense evolve?

    <p>Fourteenth century</p> Signup and view all the answers

    Which is the oldest existing retail bank?

    <p>Banca Monte dei Paschi di Siena (founded in 1472)</p> Signup and view all the answers

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