Which Two of These Activities Define the Essence of How

question 2

Multiple Choice

Which two of these activities define the essence of how a bank functions?

• A)Banks take deposits and disperse funds.
• B)Banks disperse funds and make loans.
• C)Banks take deposits and buy US Treasury securities.
• D)Banks take deposits and make loans.

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Definitions:

Tax Treatment

The manner in which an item or transaction is taxed by authorities, affecting how it is reported and what deductions or credits may apply.

Limited Liability

A legal structure for businesses where owners' personal assets are protected from the company's debts and liabilities.

Objectivity

The principle of being unbiased and based on observable phenomena, ensuring that personal feelings or opinions do not affect data collection and interpretation.

Financial Information

Data related to the financial status of an entity, including assets, liabilities, revenues, and expenses, which is used for analysis and decision-making.