All of the Following Are Basic Functions of a Bank's

question 29

Multiple Choice

All of the following are basic functions of a bank's trading activities except:

• A) offering investment advice to customers.
• B) maintaining an inventory of securities for possible sale to investors.
• C) speculating on short-term interest rate movements.
• D) All of the above are basic functions of a bank's trading activities.
• E) None of the above are basic functions of a bank's trading activities.

---

Definitions:

SWOT Analysis

A strategic planning tool used to identify and understand an organization’s Strengths, Weaknesses, Opportunities, and Threats.

Substitute Products

Products that serve as alternatives to each other; when the price of one increases, the demand for the alternative typically increases.

Regulations

Rules or directives made and maintained by an authority to control or govern behavior and practices within specific areas.

Diversification

A strategy of investing in a variety of assets to reduce overall risk.