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Questions and Answers
What is the main function of a bank?
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?
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?
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?
In which century did banking in its modern sense evolve?
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Which is the oldest existing retail bank?
Which is the oldest existing retail bank?
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