Banking and Financial Institutions Quiz
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Questions and Answers

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

  • Interest rate controls
  • Maximum loan limits
  • Foreign exchange regulations
  • Minimum capital requirements (correct)
  • What is the primary function of a bank?

  • Investing in capital markets
  • Providing insurance services
  • Accepting deposits and making loans (correct)
  • Issuing credit cards
  • Which system do most countries institutionalize for banks?

  • Asset-based banking
  • Credit-based banking
  • Full-reserve banking
  • Fractional-reserve banking (correct)
  • 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 according to the text?

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

    What system do most countries institutionalize to ensure liquidity for banks?

    <p>Fractional-reserve banking</p> Signup and view all the answers

    In what century did banking in its modern sense evolve?

    <p>14th century</p> Signup and view all the answers

    Which dynasty played a central role in the history of banking over many centuries?

    <p>The Medicis</p> Signup and view all the answers

    Which international set of capital standards do banks generally comply with?

    <p>Basel Accords</p> Signup and view all the answers

    Which is the oldest existing merchant bank according to the text?

    <p>Berenberg Bank (founded in 1590)</p> Signup and view all the answers

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