10-3 Income from trading activities of FIs is less important today than the traditional activities of banks.

Question

Quizplus · Accepted Answer

Income from trading activities of FIs has become increasingly important in today's financial markets, especially with the rise of electronic trading and globalization. Trading activities such as securities underwriting, market-making, and proprietary trading can generate substantial profits for FIs. However, traditional activities of banks such as lending and deposit-taking still remain the core activities of most financial institutions, providing stability and essential services to the economy.

10-3 Income from Trading Activities of FIs Is Less Important