1. Finance Industry

For many people, all or most of their transactions with banks are carried out online.

• True

• False

Banks are the only businesses permitted to lend money to individuals.

• True

• False

Most major banks are private companies and are often owned by families.

• True

• False

A significant proportion of banks's profits are made from the interest on loans and credit cards and other fees they charge to customers.

• True

• False

Which of the following statements about credit unions and building societies is true?

• They often draw their membership from a particular industry or section of the community.

• They are generally major public companies with millions of shareholders, many of whom are not customers.

• All members are paid a share of any profits that are made.

• They are permitted to make small loans to members but cannot provide finance for home or property purchases.

Banks are the most prominent financial institutions, but individuals and businesses do have other options that offer ? and savings products.

Credit unions and building societies have members rather than ?.

Credit unions and building societies operate by putting profits back into the pool of money they control and make available to their ? for borrowing.

Finance companies are another option for loans but they generally charge higher ? rates than banks.