banks Flashcards
1
Q
objectives of a bank
A
- profitability
- liquidity
- security ( loans are secured against property and therefore less risk )
2
Q
what’s a central bank
A
- bank of england
- federal reserve
acts as a national bank and proceeds services to the government and the banking system as well as controlling monetary policy
3
Q
what’s a commercial bank
A
a financial institution which aims to make a profit by selling banking services to its customers
4
Q
what’s an investment bank
A
- a bank which doesn’t generally accept deposits from the public
- offer financial advice and consultancy
- help with stock market flotations ( mergers and acquisitions )
- deal directly in financial markets for their own account
5
Q
list all assets found on balance sheet
A
- cash
- balance at the back of england
- money at short and call notice
- bills
- investments
- advances
- fixed assets
6
Q
list all liabilities found on balance sheet
A
- long term borrowing
- short term borrowing from money markets
- customers deposits
- share capital
- reserves
