Types of Banking Activities

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What is the main function of retail or commercial banking?

Raising capital for large firms and institutions

Managing and overseeing investment portfolios

Making loans and taking deposits from individuals and small/medium enterprises (correct)

Administering pension funds

Which sector does investment or wholesale banking primarily cater to?

Institutions, funds, and high-net individuals

Individuals and small businesses

Medium-sized enterprises

Large firms and multinational corporations (correct)

What are the main components of a bank's balance sheet?

Loans, debit cards, and credit cards

Cash, reserves, and loans (correct)

Real estate, equipment, and inventory

Stocks, bonds, and mutual funds

What does liquidity refer to in the context of banking?

The degree to which an asset can be converted into money at short notice without loss Signup and view all the answers

What is included in the money supply according to the Federal Reserve?

Cash, coins, and bank balances only Signup and view all the answers

What is meant by credit creation in the context of banking?

Creating loans and deposits simultaneously Signup and view all the answers

What represents the bank's own funds on its balance sheet?

Equity, including initial capital, issued shares, and accumulated profits Signup and view all the answers

Which type of banking primarily focuses on managing and overseeing investment portfolios?

Asset management Signup and view all the answers

What is the main function of corporate banking?

Raising capital for large firms and institutions Signup and view all the answers

What is the primary role of investment or wholesale banking?

Raising capital for large firms and institutions Signup and view all the answers

What does the Credit Theory of Money propose?

Money is a unit of account and deferred payment with no intrinsic value Signup and view all the answers

What is the key idea behind the State Theory of Money (Chartalism)?

The state defines the ultimate means of payment Signup and view all the answers

What does liquidity indicate in the context of money?

Protection against uncertainty by turning an asset into cash with minimal or no loss Signup and view all the answers

In capitalist societies, what is the primary focus of production according to the text?

Producing for high exchange value and profits Signup and view all the answers

What provides vital information to solve the allocation of labor under capitalism?

The existence of money as a unit of account Signup and view all the answers

According to the lecture, which theory of money views money as a unit of account in credit contracts?

Claim (credit) theories of money Signup and view all the answers

In the context of monetary analysis, what is emphasized as essential for economic production?

Money as a medium of exchange Signup and view all the answers

According to the value theory of money by Marx, what does the 'social' value of a commodity refer to?

The time it took to be proficient worker under average conditions Signup and view all the answers

Which function of money is related to its ability to preserve purchasing power over time?

Store of value Signup and view all the answers

According to the lecture, what validates a producer's concrete labor as a part of society’s abstract labor?

Exchange of a commodity against money Signup and view all the answers