Money and Banking Functions Quiz

Issuing currency and providing banking services to the government

Facilitating international trade and foreign exchange transactions

Regulating the money supply and interest rates (correct)

Providing loans to small businesses and individuals

Banks only lend money to individuals with high credit scores

Banks hold a fraction of their deposits as reserves and lend out the rest (correct)

Banks are required to maintain 100% of their deposits as reserves

Banks lend out more money than they have in reserves

Issuing currency and managing government budgetary operations

Facilitating international trade and exchange rate stability

Providing insurance for bank deposits and overseeing consumer protection laws

Controlling the money supply and regulating banks to ensure financial stability (correct)

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