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
62
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
[A]leg[B]foot[C]face[D]eye[E]nose[F]mouth[G]armIt’seitherofthetwolongpartsofthebodyusedforwalking.
[A]tape[B]radio[C]newspaper[D]dictionary[E]notebook[F]ticket[G]stampYouuseittomailaletter.
JackhisJoblastweek.Itwasdifficultforhimtofindanother【C1】______.【C2】______toldhimthatitwaspossibletogetanew
In1826,aFrenchmannamedNiepceneededpicturesforhisbusiness.Buthewasnotagoodartist.Soheinventedaverysimplec
JacklosthisJoblastweek.Itwasdifficultforhimtofindanother【C1】______.【C2】______toldhimthatitwaspossibletogeta
A、It’stooexpensive.B、OK,I’lltakeit.C、50dollars.C
Manyyearsago,KarlBenzdevelopedacar,butbeforehecouldshowittothepublic,someonehadtodriveit.BertaBenzbeliev
Mr.andMrs.RajahHassimweregoingtoeatout.Mr.Hassimtelephonedinthemorningandreserved(预定)atableinSpringRestau
Thereisnocircumstancewherethe"non-disclosure"rulecanbebrokenwithouttheconsentofthecustomer.
(a)writeshortnotesonthefollowing:(i)CAMEL(ii)MarketRiskExposure(iii)STET(iv)CodeofBankingPractice
随机试题
骨髓穿刺术的部位有()
下列有关地图舌与扁平苔藓的鉴别,说法错误的是
价值工程的核心是( )。
资料:2013年3月6日,甲公司以存出投资款440000元购入A公司股票30万股(每股面值1元)作为交易性金融资产,另支付手续费50000元。2013年4月25日,A公司宣告发放年度现金股利每股0.1元,甲公司于2013年5月12日收到股利存
职业指导的具体内容有()。
按照我国企业会计准则规定,影响每股收益计算的事项有()。
北伐战争中在湖北和湖南战场上消灭的是()的主力。
很多人认为网恋不靠谱。芝加哥大学的一个研究小组对1.9万名在2005—2012年间结婚的美国人进行在线调查后发现,超过三分之一的人是通过约会网站或Facebook等社交网络与其配偶认识的:这些被调查对象总的离婚率远低于平均离婚率。这项调查表明,网恋在成就稳
终身教育对学习型社会建立的意义。
Arewereadyforthelibraryofthefuture?Librariansorprovidersoftechsupport?Librarianstodaywilltellyoutheirj
最新回复
(
0
)