Banks Are Regulated for Which of the Reasons Listed Below

question 59

Multiple Choice

Banks are regulated for which of the reasons listed below?

• A)Banks are leading repositories of the public's savings.
• B)Banks have the power to create money.
• C)Banks provide businesses and individuals with loans that support consumption and investment spending.
• D)Banks assist governments in conducting economic policy,collecting taxes,and dispensing government payments.
• E)All of the options are correct.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.

Simple Rate

A basic form of interest calculation representing a percentage of the principal amount over a certain period of time.

Payback Period

The payback period is the duration of time it takes to recover the cost of an investment. This metric is commonly used to assess the feasibility or profitability of a project.

Straight-Line Method

A method of calculating depreciation or amortization that allocates evenly the cost of an asset over its useful life.