Banks Flashcards
1
Q
How are a majority of the transactions in the uk made
A
By using money in the form of bank deposits
2
Q
What are bank and building society deposits
A
Invisible money
3
Q
What do banks need to pay their shareholders
A
Dividends
4
Q
Who are building societies owned by
A
Building societies
5
Q
What are the factors affecting saving rates
A
How long the money is tied up
If the saver is in a regular saving plan
How big the minimum deposit for the account
6
Q
Factors affecting rates loans
A
Risk- well established firm has lower risk than a start up business
Security-e.g mortgages have low interest rates as the security is a house
