History of Banking

16. The term “fractional reserve banking” refers to:

a) Keeping a minimum amount of reserves in cash

b) Lending only a fraction of deposits received

c) Lending only to certain fractions of society

d) Reserving a fraction of annual profits

17. The first modern bank was established in:

a) Italy

b) Belgium

c) France

d) England

18. The Bretton Woods Conference, which established the international monetary system, was held in:

a) 1919

b) 1933

c) 1944

d) 1950

19. The Bank of Japan was established in:

a) 1871

b) 1892

c) 1913

d) 1948

20. The term “bull market” is associated with:

a) Stock market

b) Bond market

c) Currency market

d) Commodity market