首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Fractional reserve banking is the practice of keeping only a traction of deposits in the form of reserves. Depository institutio
Fractional reserve banking is the practice of keeping only a traction of deposits in the form of reserves. Depository institutio
admin
2012-01-26
41
问题
Fractional reserve banking is the practice of keeping only a traction of deposits in the form of reserves. Depository institutions (commercial banks, savings and loan associations, mutual savings banks, and credit unions) are able to do this because only a small fraction of their depositors is expected to turn up during any given day or week to withdraw their deposits. The bulk of deposits is invested in financial assets, from which the depository institutions earn most of their income.
Those income-earning financial assets range from bills, notes, and bonds issued by private corporations and by the federal, state, and municipal governments to mortgage loans for housing. Each type of financial institution has a different type of portfolio of assets, which reflects their area of special expertise in managing financial assets.
To demonstrate how depository institutions create money under the present system of fractional reserve banking, hypothetical example of a commercial bank, Southwest National Bank, will be used. It is assumed that federal regulations require Southwest National Bank to hold a percentage of its deposits in the form of cash reserves. This is the reserve requirement. The reserves may be held in the form of currency and coin on the premises, a form of reserves called vault cash, or they may be held in a deposit at a regional Federal Reserve Bank.
Assume that the Southwest National Bank management, taking into account the reserve requirement and the projected amount of withdrawals arid deposits, decides to keep 20 percent of its deposits in rescues.
What is the main source of income of the depository institutions?
选项
A、Different types of portfolio.
B、Bills, notes and bonds.
C、Deposits invested in financial assets.
D、Large amount of assets.
答案
C
解析
文章第二段提到Those income-earning financial assets...mortgage loans for housing。银行的收入来源很广,包括与个人与签订的bills, notes, and bonds等等,概括起来就是Deposits invested in financial assets。
转载请注明原文地址:https://kaotiyun.com/show/o7Yd777K
本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
0
FECT综合(现代金融业务)
金融英语(FECT)
相关试题推荐
Mr.Blackwasyoungandable.Thebosslikedhim.LastmonthhewassenttoChinaonbusiness.BeforehewentbackfromChina,h
JacklosthisJoblastweek.Itwasdifficultforhimtofindanother【C1】______.【C2】______toldhimthatitwaspossibletogeta
Mr.andMrs.RajahHassimweregoingtoeatout.Mr.Hassimtelephonedinthemorningandreserved(预定)atableinSpringRestau
Manyyearsago,KarlBenzdevelopedacar,butbeforehecouldshowittothepublic,someonehadtodriveit.BertaBenzbeliev
MissLiteachesforeignstudentsChineseinalanguageschool.MissLi________foreignstudentsinalanguageschool.
Basicaccountingassumptionsincludethefollowingexcept______.
ApplyingforamortgageSusanThomasandherhusbandAlanhavedecidedtobuyahouse.Theyhaveseenonethattheylikeand
A、Secure.B、Portable.C、Durable.D、Golden.D录音原文提到Asmartcardisasecure,portable,tamper-resistantdata-storagedevice.智能卡是安
A、Harmful.B、Negative.C、Goingback.D、Progressive.C录音原文提到Whilethismightappeartobeapositivestep,itisactuallyregres
Adraftislikeacheckthatcanbeendorsedbutitisn’tatitletogoods,like______.
随机试题
涉外仲裁协议的内容主要包括()
有机整体的"中心"是
房地产营销的控制方法,主要有()。
下列选项中,不属于编制近期建设规划必须遵循的原则的是()。
会计期末进行试算平衡时,试算平衡了,也不能说明账户记录绝对正确。()
下列不属于债券基金经理通常使用的免疫策略的种类是()。
[*34]拍是混合拍子。()
广场上的大钟4时敲4下,要12秒,9时敲9下,用()秒。
去年,美国竞选州和联邦政府官员的女性和男性一样可能获得成功,但是这些官员的候选人中仅有约15%是女性。因此,竞选这些职位获得成功的妇女人数如此少的原因并不是妇女难以竞选成功,而是因为想竞选的妇女太少了。以下哪项如果正确,则最能削弱以上结论?
Thewordconservationhasathriftymeaning.Toconserveistosaveandprotect,toleavewhatweourselvesenjoyinsuchgo
最新回复
(
0
)