Finance

Question 1

Types of finance

Answer 1

Consumer finance

Corporate finance

Question 2

Consumer finance

Answer 2

credit extended to individuals for purchase of assets, eg. houses, services such as education

Question 3

Corporate finance

Answer 3

credit extended to businesses and entrepreneurs for investment in productive enterprise, eg. land for agriculture, factory, mine, IT development, services.

Question 4

Percent of money that exists on computer screens actually exist as physical money:

Answer 4

3%

Question 5

Security

Answer 5

proof of ownership or debt that has been assigned a value and may be sold. (could be a stock for example).

An investment and means by which municipalities, companies and commercial enterprises can raise new capital

Question 6

The holder of that security

Answer 6

Investor.

To the holder, a security represents an investment on which the person hopes to gain profit.

• debt security (bonds)
• equity security (shares/stocks

Question 7

Financialization

Answer 7

the process by which all sorts of things are transformed into financial instruments for trading in international capital markets.

Question 8

Processes that have enabled the financialization of everything

Answer 8

• national deregulation of banking systems
• globalisation
• developments in technology (computers, mobile banking, internet)