Banking

The following headline recently appeared on the front page of a newspaper.

"Banking crisis hits commerce".

Which of these effects of a banking crisis is likely to be the most serious for businesses who are wishing to expand?

• The banks will be less willing to provide loans and overdrafts.

• The banks will be unwilling to provide advice to businesses.

• The banks will close their internet sites.

• The banks will reduce the staff numbers in their branches.

Which method of payment requires the creditor to ask the bank for payment?

• Banker's order

• Cheque

• Credit transfer

• Direct debit

A business wishes to move funds quickly between countries.

Which means of payment should it use?

• Bank draft

• Credit transfer

• Electronic transfer

• Documentary credit

A record of the customer's transactions with a bank is available to the customer in the form of

• A credit slip

• A letter

• A statement

• An Account

Why are deposits at commercial banks classified as money?

• They are liable to banks.

• They can be used to settle debts.

• They can be withdrawn at any bank.

• They earn interest for the depositor.

What is a bill of exchange?

• A document used by international travellers to pay hotel bills.

• A guarantee of payment to an importer.

• A promise to pay a debt at a fixed date in future.

• A sum of money shown on an invoice.

‘A means of payment agreed between the debtor and the creditor used for recurring and variable payments.’

Which means of payment is being described?

• Bank draft

• Direct debit

• Documentary credit

• Standing order

What is a benefit to the customer of mobile banking?

• Cheaper staffing costs

• Lower operating costs

• Smaller number of bank branches

• Wider access to banking services

What is a feature of a bank current account?

• A high interest rate is earned on money deposited.

• A minimum amount must be kept in the account.

• An overdraft may be possible.

• It is a means of long-term saving.

What is needed in order to use an ATM?

• Phone number

• PIN

• Signature

• Voice recognition