1.4 The role of credit in the economy Flashcards
1
Q
What is a bank and what is its main purpose
A
2
Q
What are interest payments?
A
3
Q
Name 3 benefits to borrowers of banks providing credit
A
4
Q
Define working capital
A
5
Q
What are 3 factors affecting interest rates
A
6
Q
What is the difference between risk and uncertainty?
A
7
Q
What is liability and the kind of liability and which businesses have each type
A
8
Q
What are 3 of the reasons businesses need finance?
A
9
Q
State the 6 internal sources of finance
A
Owners’ capital, retained profits, sale of assets, interest, dividends, wages
10
Q
External sources
A
