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Worksheets3.1 Commercial and Central Banks
Total questions: 20
Worksheet time: 15mins
Which is the best description of a 'money market'
Made up of all those people and organisations who want money and all the people and organisations who are willing and able to supply money.
Any place where buyers and sellers come together.
The money used to pay for goods and services
A bank at which people can open an account at.
Businesses and organisations which specialise in providing services such providing easy ways to make payment and store money are best described as 'financial institutions'.
True
False
What is likely to happen when the rate of interest increases?
A
B
C
D
Which statement about financial matters is correct?
A
B
C
D
Which pair of economic institutions can be found in a market economy
A
B
C
D
Which pair of economic institutions can be found in a market economy?
A
B
C
D
Which pair of economic institutions can be found in a market economy?
A
B
C
D
Interest is...
A reward for saving and a reward for borrowing
A cost of saving and a reward for borrowing
A cost of borrowing and a cost of saving
A reward for saving and a cost of borrowing
How much money will I have after the 3rd year of this investment?
£5500
£6500
£6050
£6655
How much would I pay back in total for this loan?
£5788.13
£5512.50
£5250
£788.13
A deposit account is best described as...
A current account, savings account or another type of bank account which allows money to be deposited and withdrawn by the account holder.
A safe place to store you savings
Used by people for everyday transactions
An account where customers can go overdrawn on the amount they hold in it
A central bank usually performs which combination of the following functions...(select 2)
It issue notes and coins for the nations currency and is where the king or queen holds their money
It manages the nation's gold reserves and manages payments to and from the government
It prints money for the banks to store until people withdraw it and issues the notes and coins
It issue notes and coins for the nations currency and is the lender of last resort to the banking system
IPO stands for
Inexpensive Public Offices
Initial Public Offering
Initial Public Expenses
Inedible Putrid Offal
The market value of all share or equity issued by a company is called it's...
Money for Investment
Return on Capital
Total Equity
Market Capitalisation
Governments can raise money to finance public spending through the sale of...
James
Bonds
Shares
Stocks
The majority of sales on a stock exchange are of stocks that are being resold subsequent times after their very first purchase...
True
False
The largest stock exchange in the world is...
LSE
Korea Exchange
Shanghai Stock Exchange
NYSE
Firms do not have to pay back the money that they raise through the sale of shares...
True
False
Which of the following best describes an investment bank...
These banks specialise in helping large business organisations to raise finance to fund their operations and expansion, usually through helping them to issue an sell stocks and shares on the stock market.
These are also known as savings and loans associations or building societies.
This is a co-operative, not-for-profit organisation, owned by and for its members. They provide low cost loans for people on low incomes.
This type of bank offers services based on the principles of Sharia Law which forbids interest charges and payments.
Credit Unions
These banks specialise in helping large business organisations to raise finance to fund their operations and expansion, usually through helping them to issue an sell stocks and shares on the stock market.
These are also known as savings and loans associations or building societies.
This is a co-operative, not-for-profit organisation, owned by and for its members. They provide low cost loans for people on low incomes.
This type of bank offers services based on the principles of Sharia Law which forbids interest charges and payments.
