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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is a commercial bank?
💡 Hint: Think about where you keep your money.
Question 2
Easy
Name one service provided by commercial banks.
💡 Hint: What do you do with your money at a bank?
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What primary function do commercial banks serve?
- Only accept deposits
- Only provide loans
- Both accept deposits and provide loans
💡 Hint: Think about what you do with your bank account.
Question 2
True or False: Commercial banks can create money through credit creation.
- True
- False
💡 Hint: What happens when banks lend money to customers?
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Given a reserve requirement of 10%, compute how much money can a bank lend out if it receives a total of $500,000 in deposits.
💡 Hint: Calculate the reserve and subtract it from the total deposits.
Question 2
Explain how an increase in loans issued by commercial banks could affect inflation in a growing economy.
💡 Hint: Consider the relationship between demand and prices in the economy.
Challenge and get performance evaluation