Which of the following is true of banks?
A) Banks reduce the opportunity cost of holding idle cash.
B) Banks act as intermediaries between the government and private investors.
C) Banks can reduce risk by lending to rich borrowers.
D) Banks reduce the transaction costs of borrowing and lending money.
E) Banks can reduce risks by extending more loans.
Correct Answer:
Verified
Q23: A bank's net worth is:
A)equal to assets
Q24: Banks help to overcome the problem of
Q25: If a bank has $1 million in
Q26: When a customer deposits $1,000 in a
Q27: If a bank has $6,000 in checkable
Q29: On a bank's balance sheet,the value of
Q30: A bank can legally hold reserves as:
A)gold
Q31: When a customer deposits $100 into a
Q32: Which of the following is a liability
Q33: If the required reserve ratio is 10
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