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Questions and Answers
Banks accept deposits from the public and make loans.
Banks accept deposits from the public and make loans.
True
Lending activities can only be performed directly by banks.
Lending activities can only be performed directly by banks.
False
Most countries regulate banks to ensure financial stability.
Most countries regulate banks to ensure financial stability.
True
Fractional-reserve banking requires banks to hold liquid assets equal to all of their current liabilities.
Fractional-reserve banking requires banks to hold liquid assets equal to all of their current liabilities.
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Banking in its modern sense originated in Renaissance Italy.
Banking in its modern sense originated in Renaissance Italy.
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