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Questions and Answers
Which activity can banks perform indirectly through capital markets?
Which activity can banks perform indirectly through capital markets?
- Creating demand deposits
- Lending activities (correct)
- Making loans
- Accepting deposits from the public
What system do most countries have institutionalized in banking?
What system do most countries have institutionalized in banking?
- Minimum capital requirements
- International set of capital standards
- Fractional-reserve banking (correct)
- Basel Accords
Where did banking in its modern sense evolve in the fourteenth century?
Where did banking in its modern sense evolve in the fourteenth century?
- Capital markets
- Prosperous cities
- Renaissance Italy (correct)
- Ancient world
What is the main role of banks in a country's economy?
What is the main role of banks in a country's economy?
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What do banks generally hold as liquid assets?
What do banks generally hold as liquid assets?
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