Which of the Following Functions Are Performed by Depository Institutions

question 485

Multiple Choice

Which of the following functions are performed by depository institutions?
I. They make long-term loans using short-term deposits, thereby creating liquidity.
II. They efficiently gather funds from a large base of depositors.
III. They concentrate risk.

• A) I only
• B) II only
• C) III only
• D) I and II

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Definitions:

Paul IV

Pope from 1555 to 1559, who was notable for his role in the Counter-Reformation and his efforts to enforce the censorship of publications.

Council of Trent

An ecumenical council of the Roman Catholic Church convened between 1545 and 1563 to address the challenges of the Protestant Reformation and clarify Catholic doctrine.

Eucharist

A Christian sacrament commemorating the Last Supper, in which bread and wine are consecrated and consumed to symbolize the body and blood of Jesus Christ, celebrated across various denominations.

Sacraments

Religious rites recognized as of particular importance and significance in Christian churches, typically involving a physical and spiritual symbolic act.