M2 - topic 2 part2 financial institutions Flashcards
what do banks do
receive deposits and approve loans to borrowers
what do investment banks do
provide advice and financial services for businesses. (example: advice on mergers and takeovers)
what do unit trusts do
take funds from a large number of small investors and collectively invest them
what does the Australian securities exchange (ASX) do
act as the main market for the sales of shares in Australia
what do superannuation funds do
invest the contribution of members into investments in order to maximise future returns
what do finance and insurance companies do
provide loans to individuals and business and may specialise in leasing and factoring.
who are the big 4 banks
NAB
Westpac
Commonwealth
ANZ
list two examples of investment banks
macquarie bank
JP Morgan
what services do investment banks offer (3)
raise money for customer
advisory services for corporations/customers
loans
how much of your wage is put into superannuation
9%
what was the purpose of superannuation
to allow people to save money on retirement and require less on the pension
what happens on the primary financial market
business’s sell or float their shares to the public for the first time
where does the money go in a primary market
to the business
what happens on the secondary market
on selling of shares between the general public
do business gain the money from the secondary market
no, money is transferred between buyers and on sellers
what are credit unions
a non-profit-making money cooperative whose members can borrow from pooled deposits at low interest rates
list some examples of credit unions (2)
gold coast finance
police credit union
what are building societies
financial organisations which pay interest on investments by its members and lends funds to purchase or improve of houses.
list some examples building societies (2)
Maitland mutual building society
leeds building society
what are the classifications for the main types of financial institutions (3)
authorised deposit
non authorised deposit
insurers and fund managers
what is a financial institution that is classified as an authorised deposit allowed to do
permitted to accept deposits from the public
list financial institutions that are classified as authorised deposit (3)
banks
credit unions
building unions
list some examples of financial institutions that are classified as non authorised deposits (3)
broker dealer,
finance companies,
securitisers
list examples of financial institutions that are classified as insures and fund managers (1)
life insurance companies
