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WorksheetsBanking, Money, ETC...
Total questions: 21
Worksheet time: 11mins
Which financial institutions act as a lender of last resort?
Commercial Banks
Investment Banks
Central Banks
Savings Banks
What is the most likely results of an increase in interest rates?
Rise in investment
Rise in borrowing
Fall in consumer spending
fall in productivity
A government lowers the rate of interest, but who benefits the most?
House Buyers
Manufacturers
Retailers
Savers
When will a central bank act as a lender of last resort to commercial banks?
Show Answers
When a commercial bank face a liquidity crisis
when a commercial banks fails to make a profit
when a commercial bank needs to raise share capital
when a commercial bank reduces it lending rates
What is most likely to cause a person to save a larger proportion of their weekly income rather than spend a larger proportion of their weekly income?
a decrease in the tax on goods and services
a decrease in weekly income
an increase in interest rates
an increase in the range of products available
The use of mobile cell phones to make payments is an example of which of the function of money?
A medium of exchange
A standard of deferred payment
A store of wealth
A unit of account
What is the usual reason why citizens trust their country's banknotes?
They are acceptable for trade and exchange
They are backed by gold at the central bank
They are convertible into US dollars
They are recognizable and in theroy in infinite supply
Which function of money is most closely linked to saving?
Medium of exchange
Standard for deferred payment
Store of value
Unit of account
What function does a central bank do?
It issues local currency
It offers overdraft facilities to consumers
It operates deposit accounts
It raises taxation
What is the main form of money used in Europe?
Bank accounts
Coins
Gold
Notes
What is the main function of a commercial bank?
To hold the country's reserves of foreign currency
To issue the shares of companies
To lend to its customers
To regulate the banking system
What is the base or discount rate?
the lowest amount the banks are allowed to charge for loans or mortgages
the discount consumers get when opening a savings account
the percentage figure for lending by central banks to commercial banks
the average percentage figure given by commercial banks for savings
What impact would an increase in the rate of interest be likely to have on borrowing and savings in an economy?
Decrease in borrowing and a decrease in savings
Decrease in borrowing and an increase in savings
Increase in borrowing and an increase in savings
Increase in borrowing and a decrease in savings
f a country decreases it interest rates, what is the most likely to happen?
an increase in people buying houses
an decrease in consumer spending
a decrease in aggregate demand
an increase in the money supply
An individual has various financial assets, what is the most easily available as cash?
a current checking bank account
Government bonds
shares in a public company
time restricted deposits in a savings bank
Why do banknotes function as money?
they are backed by gold
they are durable
they are generally acceptable
they have intrinsic value
For anything to be used as money, it must be?
a fixed value
in fixed supply
legal tender
readily acceptable
Which motive is most likely to increase the wish to open a savings account?
to have cash immediately available
to prepare for future expenditure
to satisfy essential needs
to widen present consumption choices
There is lots of ways to make a payment now. as well as cash, debit cards, credit cards, even mobile cell phones are now being used. Which method provides no information on customers?
Cash
Debit Cards
Credit Cards
Cell Phones
Which asset is the most liquid?
Cash
Money Orders
Government Bonds
A House
Which financial institutions act as a lender of last resort?
Commercial Banks
Investment Banks
Central Banks
Savings Banks
