Banking and Financial Systems (with Complete Solutions)

Front Side correct answers Back Side Asset correct answers Is anything of value. Spread correct answers The difference between what a bank pays in interest and what it recieves in interest. Depository Intermediary correct answers A financial institution that obtains funds from the public and use them to finance their businesses. Retail Banks correct answers Help people not served by a commercial bank, save money, acquire loans, and invest. Liability correct answers A cash obligation. Non-Depository Intermediary correct answers A financial institution that does not take or hold deposits. They earn money by selling specific services or policies. Niche Market correct answers Smaller banks that target particular customers in specific locations or by certain services. Liquid Asset correct answers Anything that can readily be exchanged. Central Banks correct answers Governmental banks that manage, regulate, and protect the money supply and the bankers themselves. Issue currency. Commercial Banks correct answers Do about 60% of deposit and loan and provide services such as checking and savings accounts, credit cards, investment services, and etc. Depositors correct answers People that put money into banks. Profit correct answers What is left of revenue after costs are deducted. Medium of Exchange correct answers An agreed upon system for measuring values of goods and services. aggregate income correct answers the total income of factors of production (land, labor, and capital) inflation rate correct answers the rate of change of the price level, usually measured as a % change per year) gross domestic output (GDP) correct answers a measure of aggregate output