Money is a legal tender; it is sanctioned by

• the minister of office

• the currency authority central bank

• the cabinet

The most important function of money is

• it is a medium of exchange

• it is accepted by the company

• it is made from paper and copper

• it is issued by the central bank

An important use of money is to

• store in the bank

• pay debts

• measure of value

• pay for goods and service

Commercial banks aid international trade by

• opening their banks all day

• accepting deposits from traders

• making investments from exporters

• offering letters of credit to importers

The stock exchange is a marketplace where

• all businesses raise financial capital

• second-hand stocks are bought and sold

• brokers buy and sell securities

• shares are exchanged for stocks

Building societies offer loans specifically to

• their members only

• anyone wishing to build or buy a home

• trade unions members

• employees and their families

Collateral security is required by lending institutions because

• borrowers are usually smart people

• it helps poor people to get loans

• it is a requirement of the law of the company

• the asset can be sold in the event of non-payment

The system that enables inter-bank indebtedness is referred to as the

• clearing-house system

• cheque system

• central banking system

• commercial banking system

borrowing funds and issuing loans to citizens

• open market operations

• standing order

• bill of exchange

• central bank

Institutions that provide financing for traders

• standing order

• merchant banks

• near money

• central banks