Exploring Financial Services

What are the primary functions of banking services?

• The primary functions of banking services include accepting deposits, providing loans, facilitating payments, and offering financial advice.

• Investing in stocks

• Managing real estate properties

• Providing insurance services

Define factoring and its role in financial services.

• Factoring is the act of consolidating loans to reduce interest rates.

• Factoring is the sale of accounts receivable to a third party for immediate cash, playing a key role in providing liquidity and managing cash flow in financial services.

• Factoring refers to the process of auditing financial statements for accuracy.

• Factoring is a method of investing in stocks for long-term growth.

What is forfaiting and how does it differ from factoring?

• Forfaiting is only used for domestic transactions.

• Factoring always involves selling receivables with full recourse.

• Forfaiting involves selling receivables without recourse, while factoring may involve retaining some risk.

• Forfaiting is a type of loan secured by inventory.

List three examples of financial technology innovations.

• Mobile payment systems, blockchain technology, robo-advisors

• Traditional banking services

• Credit card rewards programs

• Stock market analysis tools

What is a Central Bank Digital Currency (CBDC)?

• A Central Bank Digital Currency (CBDC) is a digital currency issued by a central bank.

• A Central Bank Digital Currency is a physical form of money.

• A CBDC is a cryptocurrency created by private companies.

• CBDC stands for Central Bank Digital Credit.

Identify one major challenge facing the financial service sector today.

• High interest rates

• Cybersecurity threats

• Regulatory compliance issues

• Lack of customer trust

What are emerging financial products in the market?

• Traditional savings accounts

• Stock market indices

• Cryptocurrencies, peer-to-peer lending, robo-advisors, green bonds

• Real estate investment trusts

How do banking services contribute to economic growth?

• Banking services primarily focus on currency exchange.

• Banking services only increase government revenue.

• Banking services are only beneficial for large corporations.

• Banking services contribute to economic growth by providing access to capital, enabling investments, facilitating savings, and promoting financial stability.

Explain the process of factoring in detail.

• Factoring is the method of simplifying an expression by dividing it by a constant.

• Factoring involves finding the square root of an expression.

• Factoring is the process of breaking down an expression into a product of simpler expressions.

• Factoring is the process of adding two expressions together.

What are the advantages of forfaiting for exporters?

• Increased export duties

• Longer payment terms for buyers

• The advantages of forfaiting for exporters include immediate cash flow, risk mitigation, simplified financial management, enhanced competitiveness, and protection against currency and interest rate risks.

• Higher interest rates on loans