Section Eight - Finance

Question 1

Financial Sector

Answer 1

A section of the economy made up of firms and institutions that provide financial services to commercial and retail customers

Question 2

What is the financial sector made up of?

Answer 2

Government financing agencies
The Central Bank
Commercial banks
Mortgage companies
Unit trust

Question 3

Commercial bank

Answer 3

A financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment

Question 4

Functions of Commercial Banks

Answer 4

Acceptance of deposits

Supply finance

Provide a system of payment for bills

Question 5

Services offered by Commercial Banks

Answer 5

Safety deposit boxes
Mortgages
Credit cards
Retirement savings plans

Question 6

Types of Bank Accounts

Answer 6

Savings
Current
fixed

Question 7

Central Bank

Answer 7

The country’s official government’s bank. It is the central authority regulating the financing sector in the economy and managing the public debt

Question 8

Functions of the Central Bank

Answer 8

Issues and regulates bank notes
Acts as government’s bank
Responsible for foreign reserves

Question 9

Cheques

Answer 9

A cheque, is a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued

Question 10

Types of Cheques

Answer 10

Bearer cheques
Order cheques
Open and crossed cheques