A Characteristic Typical of Commercial Banks Is That

question 61

Multiple Choice

A characteristic typical of commercial banks is that

• A) depositors are completely protected, because every cent of their deposits is covered by the bank's reserves.
• B) money put up by the owners is the main source of funds for making loans.
• C) they lend short and borrow long.
• D) they are more profitable as the percentage of demand deposits they keep as reserves rises.
• E) a very large percentage of their liabilities must be paid on demand.

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Definitions:

Emotional Experience

A complex state of feeling resulting in physical and psychological changes that influence thought and behavior.

Behavioural Component

Refers to the actions or reactions of an individual in response to external or internal stimuli.

Achievement Motivation

The drive or desire to accomplish goals, excel, and attain success as defined by the individual or society.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment, often prioritizing short-term rewards over long-term outcomes.