Bank Exams Questions

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Required Number of ways = 4C2 × 3C2 × 2C1 = 36 = 36

The pattern follows the palindrome sequence.

Here the digits 0 1 4 7 8 5 8 3 6 9    9 6 3 8 5 8 7 4 1 0   0 1 4 7 ...

So the next digit in the sequence is 1.

Most modern banking systems are based on Fractional reserves.

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Reserves are held as currency in the bank, or as balances in the bank's accounts at the central bank.

1. In a fractional reserve banking system banks can create money through the lending process.

2. A fractional reserve banking system is susceptible to bank panics.

3. Bank panics are a risk of fractional reserve banking, but are unlikely when banks are highly regulated and lend prudently.