Economics

Which is not a function of money?

• store of value

• unit of value

• standard of deferred payment

• medium of exchange

Which of the following is not a feature of money?

• portability

• uniformity

• divisibility

• suitability

What is the definition of broad money?

• notes and coins, all chequing accounts and travellers’ cheques

• notes and coins plus savings deposits and money market accounts

• M1 plus money market accounts only

• M1 plus savings deposits and money market accounts

What is the role of the financial sector in the economy?

• It attracts funds from lenders which it loans to firms, private individuals and the government.

• It issues notes and coins for circulation.

• It obtains foreign loans for the government

• It lends money to individuals free of interest

Which of the following is part of the informal sector?

• a credit union

• an insurance company

• a building society

• a phone card vendor

Which of the following is a function of the central bank?

• It accepts deposits

• It is banker for the government.

• It makes loans to individuals.

• It issues foreign currency

Which of the following is a function of a commercial bank?

• It issues notes and coins.

• It sells insurance policies

• It manages the country’s foreign exchange reserves

• It makes loans to firms and individuals

How is a commercial bank different from a credit union?

• Commercial banks charge a lower rate of interest than credit unions.

• A commercial bank is owned by its depositors.

• A credit union is owned by its members.

• Unlike commercial banks, credit unions do not give loans.

Which is not a financial institution in Jamaica?

• National Commercial Bank

• Jamaica Money Market Broker

• Jamaica National Building Society

• The Federal Reserve

What is the ‘informal sector’ of the economy?