logo

CuriousTab

CuriousTab

Discussion


Home Interview Accounting and Finance See What Others Are Saying!
  • Question
  • Most modern Banking Systems are based on


  • Options
  • A. commodity money
  • B. 100 percent reserves
  • C. fractional reserves
  • D. money of intrinsic value

  • Correct Answer
  • fractional reserves 

    Explanation

    Most modern banking systems are based on Fractional reserves.

     

    Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Reserves are held as currency in the bank, or as balances in the bank's accounts at the central bank.

    1. In a fractional reserve banking system banks can create money through the lending process.

    2. A fractional reserve banking system is susceptible to bank panics.

    3. Bank panics are a risk of fractional reserve banking, but are unlikely when banks are highly regulated and lend prudently.

  • Tags: Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

    More questions

    • 1. Write SQL Query to display current date?
    • Discuss
    • 2. Which is more effective while calling the functions?

    • Options
    • A. call by value
    • B. call by reference
    • C. call by pointer
    • D. none
    • Discuss
    • 3. Which of the following is not the member of class?

    • Options
    • A. Virtual function
    • B. Static function
    • C. Friend function
    • D. Const function
    • Discuss
    • 4. Which of the following gives the memory address of the first element in array?

    • Options
    • A. array[0];
    • B. array[1];
    • C. array(2);
    • D. array;
    • Discuss
    • 5. Write an SQL Query to check whether date passed to Query is date of given format or not.
    • Discuss
    • 6. What is the scope resolution operator?
    • Discuss
    • 7. What are the support tickets given in SAP fico module? please give some examples.
    • Discuss
    • 8. Which of the following attribute can hold the JavaScript version?

    • Options
    • A. script
    • B. version
    • C. language
    • D. none of the above
    • Discuss
    • 9. What is recovery/error testing?
    • Discuss
    • 10. Which design patterns benefit from the multiple inheritance?

    • Options
    • A. Adapter and observer pattern
    • B. Code pattern
    • C. Glue pattern
    • D. None of these
    • Discuss


    Comments

    There are no comments.

Enter a new Comment