Financial Sector Quiz

What is a reserve requirement?

• A reserve requirement is the amount of funds that a bank holds in reserve to ensure that it is able to meet liabilities in case of withdrawals

• A reserve requirement is the purchase and sale of government securities by the central bank and is the main policy tool for influencing liquidity in the domestic financial sector

• A reserve requirement is the act of persuading a person or group to act in a certain way

• A reserve requirement is an interest rate that the central bank sets in order to influence the evolution of the main monetary variables in the economy

What is a commercial bank?

• A commercial bank is a non-profit investment cooperative that offers the traditional services of a bank to its members with higher interest rates on deposits but provides them with fewer banking options

• A commercial bank is a specialised financial institution that provides financial services for individuals in relation to particular industries such as agriculture and housing

• A commercial bank is an institution that facilitates economic growth by promoting the saving of money and providing individuals and firms with relatively easy access to the funds being stored

• A commercial bank is a company that creates insurance products to take on risks in return for the payment of premiums

What is a development bank?

• A development bank is a group that is collectively owned by its members who are usually friends or relatives

• A development bank is a specialised financial institution that provides financial services for individuals in relation to particular industries such as agriculture and housing

• A development bank is is a company with a fixed number of shares in a stock exchange that it sells to investors and then pools the money to make investments on their behalf

• A development bank is a non-profit investment cooperative that offers the traditional services of a bank to its members with higher interest rates on deposits but provides them with fewer banking options

What is a corporate bond?

• A corporate bond is a savings account that earns interest on a fixed amount of money for a fixed period of time

• A corporate bond is a debt instrument that holds an unvarying duration and interest rate, making it the safest securities and issued by the government to the market

• A corporate bond is a type of debt security that is distributed by a state or country to assist in financing its capital expenditures

• A corporate bond is a type of debt security that is sold to investors by a firm with the intention of raising capital

What is a share certificate?

• A share certificate is a written document signed by an owner and given to a company as a loan to share with another company

• A share certificate is a written document signed by a company and given to shareholders as legal proof of ownership of a specified number of company shares

• A share certificate is a written document signed by a company and given to the bank monthly

• A share certificate is a written document signed by a shareholder and given to a bank in order to withdraw money