3.1 Commercial and Central Banks

Which is the best description of a 'money market'

• Made up of all those people and organisations who want money and all the people and organisations who are willing and able to supply money.

• Any place where buyers and sellers come together.

• The money used to pay for goods and services

• A bank at which people can open an account at.

Businesses and organisations which specialise in providing services such providing easy ways to make payment and store money are best described as 'financial institutions'.

• True

• False

What is likely to happen when the rate of interest increases?

• A

• B

• C

• D

Which statement about financial matters is correct?

• A

• B

• C

• D

Which pair of economic institutions can be found in a market economy

• A

• B

• C

• D

Which pair of economic institutions can be found in a market economy?

• A

• B

• C

• D

Which pair of economic institutions can be found in a market economy?

• A

• B

• C

• D

Interest is...

• A reward for saving and a reward for borrowing

• A cost of saving and a reward for borrowing

• A cost of borrowing and a cost of saving

• A reward for saving and a cost of borrowing

How much money will I have after the 3rd year of this investment?

• £5500

• £6500

• £6050

• £6655

How much would I pay back in total for this loan?

• £5788.13

• £5512.50

• £5250

• £788.13