6 Questions
Which type of deposits are accessible on demand?
Demand deposits
Which type of deposits earn interest for depositors?
Savings accounts
How does the depository institution earn interest?
By offering loans
Which term describes the concept of being able to buy the same level of goods and services in a foreign country when converting currency?
Purchasing power parity
What is the main purpose of converting the cost of goods and services in one country to another currency?
To compare the cost of living between countries
Which factor should remain constant for purchasing power parity to hold true?
Inflation rates
Test your knowledge on how depository institutions make money! Learn about demand deposits, time deposits, interest rates, and more. Discover the various ways depository institutions earn interest and keep cash on hand. Take the quiz now and become an expert on the financial workings of depository institutions!
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