Financial Institutions and Global Economy

Select the two types of financial institutions:

• banks

• monopolies

• corporations

• savings and loans

How do banks encourage saving and investing?

• They provide financial capital to borrowers

• They pay interest on deposits

• They receive deposits and make loans to borrowers

• They offer savings and checking accounts to their clients.

Financial institutions like banks help facilitate an exchange of money between what two groups?

• Borrowers

• Lenders

• Savers

• Monopolies

What do you call money put into an account?

• Lender

• Deposit

• Savings

• Checking

The main functions of financial institutions are to receive ____ and make _____.

(Select two words that complete the blank spaces in the sentence)

• deposits

• savings

• loans

• businesses

FInancial institutions help provide money to people and businesses to start or grow _______.

• savings

• loans

• businesses

• monopolies

True or false: Specialization in production of certain goods promotes efficiency and growth.

• True

• False

True or False: The internet contributes to the global flow of information, capital, goods and services.

• True

• False

What do you call the worldwide markets in which the buying and selling of goods and services by all individuals, nations, and businesses take place?

• Global Economy

• Monopoly

• United States Economy

• European Union

The use of technology has helped to ______ the cost of production for goods and services.

• Reduce

• Maintain

• Increase