Banking

What differs merchant (investment) bank from commercial one?

• Merchant banks work mainly with the government

• Merchant banks work mainly with individuals

• Merchant banks deal mainly with businesses

• Merchant banks deal mainly with commercial banks

What are the main types of deposits? (3)

• Current Deposit

• Interest Deposit

• Fixed deposit

• Savings deposit

What is the difference between current and fixed deposit?

• Current deposit is only for small sums of money

• Fixed deposits can be withdrawn any time, but current deposits can not

• Current deposits can be withdrawn any time, but fixed deposits can not

What types of loans do you know? (3)

• Savings

• Cash credit

• overdraft

• current

• Mortage

What are the primary functions of commercial banks? (2)

• accepting deposits

• collection of checks

• granting loans

• foreign exchange

Which of the following are the secondary functions of the commercial banks? (3)

• collection of checks

• transfer of funds

• dealing in foreign exchange

• accepting deposits

• lending money

What is a minimum interest rate?

• This is the discount rate, at which the central bank makes secured loans to government

• This is the discount rate, at which the central bank makes secured loans to individuals

• This is the discount rate, at which the central bank makes secured loans to business

• This is the discount rate, at which the central bank makes secured loans to commercial banks

What are the advantages of keeping money in the bank? (2)

• interest

• protection of funds

• The possibility of withdrawing money anytime with high interest rates

• good pension

Why banks make profit? The main source

• They collect more interest than they pay to savers

• They pay more to savers than they collect

• They sell a lot of currency

• They render a lot of consult services

Which of the following are Central banks? (3)

• Federal Reserve of the United States

• Bank of England

• Central Bank of Russia

• Barclays

• Sberbank