Banking

Question 1

How do intermediaries lower risk?

Answer 1

-eos
-specialist management
-diversification

Question 2

What are the 4 types of banking?

Answer 2

-core banking
-corporate banking
-investment banking
-market activity banking

Question 3

What is monetary policy?

Answer 3

Interest rates

Question 4

Name 4 banking management risks

Answer 4

-credit risk (payability)
-interest rate risk (unexpected changes)
-liquidity risk (unexpected withdrawals)
-foreign exchange risk (spiced)

Question 5

Define central bank

Answer 5

A financial institution responsible for overseeing the monetary system for a nation, with the goal of postering economic growth without inflation