（i）Wholesale bank

（ii）Pension fund

（iii）Unit trust

（iv）Deposit-taking companies

（i）Virtual banks are restricted licenced banks and they have to take deposit size of $$100,000 with an original term of maturity of at least three months.

（ii）Virtual banks are licenced banks and they have to take deposits of any maturity of $$500,000 or above.

（iii）Virtual banks are licenced banks and are allowed to accept deposits of any size and maturity.

（iv）Virtual banks are allowed to pay or collect cheques drawn by or paid in by their customers.

Bid

Ask

$$45.25

$$45.50

Which of the following description is correct?

（i）

the interest rate of the interbank market is determined by the free hand of the market, affected by factors such as availability of funds in the market, the level of prevailing interest rates and the term structure of interest rates.

（ii）If the bank is short of HKD funds, the bank can go to the HKD interbank market to lend to other banks. If it has a surplus, it can borrow from other banks.

（iii）HIBOR (Hong Kong Interbank Offered Rate) is the Hong Kong interbank best offer rate.

（i）Money market is equivalent to foreign exchange market.

（ii）Interest rates in the money market affect supply and demand for short-term funds.

（iii）Money market is for borrowing and lending of money in the very short term, with maturities that usually range from overnight to just below a year.

（iv）Treasury bills and commercial papers are common types of money market instruments.

（i）Treasury bills

（ii）Treasury bonds

（iii）Warrant

（iv）Stock

（i）Most leading banks in the US now undertake both commercial and investment banking activities

（ii）A new form of bank holding company – the financial holding company – became effective after the Gramm-Leach-Bliley Act was passed.

（iii）The Federal Reserve provided a loan to rescue Goldman Sachs in 2008.

（iv）Investment banks in the U.S. are regulated by the Federal Reserve.

（i）The Federal Reserve was created in 1913 by the enactment of the Banking Ordinance.

（ii）The Federal Reserve has 13 regional Federal Reserve banks.

（iii）The Federal Reserve is the central clearing system of the United States.

（iv）The Federal Reserve is a quasi-public and quasi-private banking system