Practice Lending Money (5.3.A.2) - Banking

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9 questions

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3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is a loan?
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Consider what a bank provides to borrowers.
Question 2.
Give an example of an overdraft.
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Think about a bank service that allows you to access more funds temporarily.
3Question 3.
What is one function of a commercial bank?
- Accepting Deposits
- Selling groceries
- Manufacturing products
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Think of what banks primarily do with customer funds.
4Question 4.
True or False: An overdraft allows you to withdraw less money than you have.
- True
- False
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Review what an overdraft entails.
Question 5.
You have a business that needs urgent cash due to unforeseen expenses. You have a cash credit facility with a bank. Discuss how you will utilize this facility and explain the alternative financing options.
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Think about how quickly you need the funds and what terms work best for you.
Question 6.
Evaluate the effects of excessive reliance on overdraft facilities for individuals. What risks do they face?
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Consider how using overdrafts regularly could impact a budget.

5 more questions in this section. Enroll free to practise them all.