LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory
If a central bank issues a retail central bank digital currency (CBDC), what potential risk arises for commercial banks?

Question

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory 
  If a central bank issues a retail central bank digital currency (CBDC), what potential risk arises for commercial banks?

Answer

Increased lending capacity through stable deposits.

Answer

Higher profitability due to lower reserve requirements.

Answer

Deposit outflows as customers move funds directly to CBDC accounts.

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LG 1. Knowledge Comprehension LO 1.1. Generate knowledge of core concept and...

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