Circle the letter of the Definition that corresponds to the displayed Term.
1. Brokerage percentages
A many banks provide currency and share-dealing services and charge a brokerage fee to customers for
B: market for medium and longer-term loan finance where securities such as shares and bonds are issued
C: firms specialising in building high risk equity portfolios
D: interest-rate spreads, service fees, brokerage percentages
2. Angel investors
A: narrow money
B: market where currencies are traded
C individuals who inject capital for business start-ups
D: money supported only by a borrower’s creditworthiness, rather than by any type of collateral
3. How can banks fail?
A: narrow money
B: measure of the value coins and notes in circulation and other money equivalents that are easily
C: market forces, regulatory policies,behaviour of consumers and businesses, monetary policy
D run on the bank, credit crunch or high losses from bad debts
4. Capital market
A: finances major projects or assets with long life
B: offering shares to the public and institutional investors via an initial public offering (IPO)
C: firms specialising in building high risk equity portfolios
D market for medium and longer-term loan finance where securities such as shares and bonds are issued
5. Commercial bank function
A provide retail banking services to household and business customers
B: inter-bank lending and short term government borrowing
C: market for short term loan finance for businesses and households, loans are usually up to 12 months
D: finances major projects or assets with long life
6. Limits to credit creation by banks
A market forces, regulatory policies,behaviour of consumers and businesses, monetary policy
B: narrow money
C: inter-bank lending and short term government borrowing
D: measure of the value coins and notes in circulation and other money equivalents that are easily
Business - 2024/25 2024/2025 Edition