Business Finance POB

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

• Managing personal savings

• Issuing notes and coins

• Providing car loans to individuals

• Selling shares in private companies

Commercial banks make a profit by:

• Selling insurance policies

• Charging interest on loans at a higher rate than they pay depositors

• Investing in mutual funds

• Printing money

Which type of financial institution is run by its members for the benefit of its members?

• Commercial banks

• Credit unions

• Central banks

• Investment banks

Which financial institution provides loans primarily for small businesses and rural enterprises?

• Commercial banks

• Micro-lending agencies

• Insurance companies

• Building societies

A building society originally focused on:

• Offering high-risk investment options

• Issuing government bond

• Providing loans for housing and property purchase

• Managing foreign exchange transactions

Which of the following is NOT a financial service provided by banks?

• Night safe deposits

• Online banking

• Printing government money

• Credit and debit cards

What is the purpose of remittance services?

• To provide short-term loans

• To allow individuals to send money to another country

• To offer tax planning advice

• To fund business expansion

What financial service allows a person to pay for purchases immediately from their bank account?

• Credit card

• Mortgage loan

• Debit card

• Fixed deposit account

An ATM (Automated Teller Machine) provides which service?

• Currency exchange

• Cash withdrawals and deposits

• Insurance policy purchases

• Issuing shares

E-trade refers to:

• Online buying and selling of stocks

• Electronic tax collection

• International trade laws

• Traditional cash-based businesses