1. Community banks typically:

1. Requires a customer to have some association with the organization
2. Help generally farmers in providing loans for agricultural purposes
3. Are smaller, locally focused commercial and savings banks
4. Offer a narrow menu of services such as credit cards and mortgages to individual customers only

2. The financial system provides a variety of services that include:

1. Setting market interest rates
2. Transforming savings received primarily from households into loans
3. Determining minimum capital requirements for financial institutions
4. Setting banking regulations

3. Which of the following is a role Banks and their closest competitors play in todays economy?

1. Role of managing risk
2. Role of setting capital requirements
3. Role of payment services
4. Both (a) and (c)