the role of money and financial markets (2.8) Flashcards
1
Q
what is money
A
anything that is accepted as a means of a payment for goods and services
2
Q
what is rate of interest
A
the cost of borrowing and the reward for saving
3
Q
what is the role of commercial banks
A
- accept deposits
- make payments on behalf of their customers eg. bank transfers
- issue loans
- offer safety deposits box
4
Q
what is a building society
A
a mutual financial institution that is owned by-its members.its primary objective are to receive deposits from its member and to lend money for members to purchase property
5
Q
what is a mortgage
A
an agreement with a financial institution to borrow money to purchase a property
6
Q
what is an insurance company
A
financial institution that guarantees compensation for specified loss, damage,illness and death in return for an agreed payment
