Which of the following is an economic function of a chartered bank?
A)conducting monetary policy
B)supervising financial markets
C)supervising the payments system
D)pooling risk
E)issuing bank notes

Question

Quizplus · Accepted Answer

pooling risk is an economic function of chartered banks as they collect deposits from a large number of individuals and businesses, and use those funds to make loans and investments, thus spreading and pooling risks. The other options listed are typically the responsibility of central banks or regulatory agencies.

Which of the Following Is an Economic Function of a Chartered