One measure of banking presence in a nation is _____
A) the amount of credit provided by banks to that nation's agricultural sector.
B) the amount of savings that the banks set aside to meet their daily withdrawal needs.
C) the credit given out by banks to that nation's service sector.
D) the total profit of the banking sector.
E) the credit provided by banks as a percent of that nation's total output.

Question

Quizplus · Accepted Answer

The credit provided by banks as a percent of that nation's total output is known as the banking sector's credit-to-GDP ratio, which is a widely used measure of banking presence in a country. It reflects the level of financial intermediation in the economy and the extent to which credit is being extended to various economic sectors.

One Measure of Banking Presence in a Nation Is _____