Type : MCQ
Intructions :
Directions: The sentences given in each question, when properly sequenced, form a coherent paragraph. Each sentence is labeled with a number. Choose the most logical order of sentences from among the given choices to construct a coherent paragraph.
1. Let us take a look at the manner in which the traditional bank adds value to the customer.
2. The ability to retain deposits, in itself, is not enough to ensure long-term survival and growth.
3. The ability to deploy invested funds into productive economic activity at a higher rate of return, hence contributing to the prosperity of both the economy and the institution, is the other loop in the banking cycle.
4. Further, as only a small portion of the actual deposit base is retained with the bank in a liquid form, the very survival of the bank lies in building enough trust with its clientele so as to prevent the occurrence of a sizeable chunk of simultaneous customer withdrawal (a run on the bank).
5. The bank's basic job is risk absorption- it takes money, which has a lot of attached risk, and provides the customer an assured rate of return.