• 2022-05-28
    The ability
    of a commercial bank to create credit depends on which TWO of the
    following?
    A: The size of
    the bank's deposits in its account at the central bank.
    B: The amount
    of cash and liquid assets held by the bank.
    C: The
    willingness of the central bank to sell bonds to the bank.
    D: The ratio
    between the bank's assets and its liabilities.
    E: The
    required ratio of liquid assets to total assets.
  • B,E

    内容

    • 0

      Which behaviors below will increase monetary aggregates ( ). A: The central bank purchases gold B: The central bank purchases foreign exchanges on foreign exchange market C: The central bank purchases government bonds D: Commercial banks sell foreign exchanges on foreign exchange market E: The central bank raises required reserve ratio

    • 1

      For a Central Bank, currency is( ) A: A Liability. B: An Assets. C: None<br/>of the above.

    • 2

      ( )means the bank with which the credit is available or any bank in the case of a credit available with any bank.

    • 3

      The<br/>European Central Bank has its headquarter in () A: Paris. B: London. C: Brussels. D: Frankfurt.

    • 4

      If the Advising Bank does not have a corresponding bank in the buyer's country, ask the bank to recommend you a well-known bank with high credit rating and insist your buyer has the L/C issued by this bank.