What is the primary purpose of a commercial bank?
Explanation
Commercial banks are the most common type of bank and are profit-oriented corporations that provide a wide range of financial services to both individuals and businesses.
Other questions
Which of the following is NOT a key characteristic required for an item to be a suitable means of exchange?
What are the three primary functions of money in an economy?
What does the M1 measure of the U.S. money supply include?
According to the text, what was the approximate value of the M2 monetary supply in the U.S. as of August 2017?
What is the primary mission of the Federal Reserve System?
How many district banks make up the Federal Reserve System?
What are open market operations, the most frequently used tool of the Federal Reserve?
When the Federal Reserve sells government bonds through open market operations, what is the intended effect on the economy?
What is the term for the interest rate that the Federal Reserve charges its member banks for loans?
The process where financial institutions accept savers' deposits and invest them in loans and other financial products is known as what?
What is the key difference between depository and nondepository financial institutions?
Which of the following is an example of a thrift institution?
What defines a credit union as a financial institution?
Which of the following is considered a nondepository financial institution?
What is the primary role of the Federal Deposit Insurance Corporation (FDIC)?
What is the current insurance ceiling for deposits per account covered by the FDIC?
Which fund, administered by the National Credit Union Administration, provides deposit insurance to credit unions?
What is one of the key challenges U.S. banks face when expanding internationally?
What is the approximate total value of assets held by the U.S. operations of foreign banks, according to March 2017 Federal Reserve data?
What is the term for financial technology services that are disrupting the traditional banking industry?
Which of the following describes the 'store of value' function of money?
Why are credit cards not considered part of the money supply?
What was the main reason for the creation of the Federal Reserve System in 1913?
When the Federal Reserve lowers the reserve requirement, what is the expected impact?
What type of financial institution is specifically formed to encourage household saving and make home mortgage loans?
How do insurance companies act as financial intermediaries?
Which legislation was passed in 2010 to implement major regulations in the financial industry following the 2007-2009 financial crisis?
According to the chapter, what is the average lifespan of a 10 dollar bill?
Which of the following financial institutions is a not-for-profit, member-owned cooperative?
The Federal Reserve's power to establish minimum down payments and maximum repayment periods for certain loans is known as what?
What does a bank charter represent?
During the 2007-2009 financial crisis, it is estimated that the Federal Reserve made more than how much in loans to major banks and other financial firms?
Which type of depository institution has seen its numbers decline from over 4,800 in the late 1960s to fewer than 800 by year-end 2016?
What do policyholders pay to insurance companies to buy financial protection?
What type of financial institution makes short-term loans for which the borrower puts up tangible assets like automobiles or inventory as security?
The Federal Open Market Committee (FOMC) is the Fed's policy-making body that meets how many times a year?
Under the Dodd-Frank Act, what are major U.S. banks required to submit to annually?
Which type of depository institution is owned by its members and is tax-exempt?
In the context of the U.S. money supply, what are time deposits?
Which national banks, according to the text, improved their overall customer experience the most in a recent ACSI survey, with an increase of more than 6 percent?
What is a key provision of the Dodd-Frank Act regarding bank operations?
According to the chapter, what is the approximate number of commercial banks in the United States?
What is the primary source of funds for a commercial bank?
In the 'MANAGING CHANGE' feature on P2P payments, what is the name of the mobile app introduced by a consortium of over 30 banks to compete with services like Venmo?
What is the estimated total of U.S. pension fund assets mentioned in the chapter?
A key difference between national banks and state banks is that national banks must belong to which system?
In what year was the Federal Deposit Insurance Corporation (FDIC) created?
The process of a bank's financial condition and management practices being reviewed by the FDIC is done through what activity?
What is one of the predicted trends reshaping financial institutions, as mentioned in the final section of the chapter?