Banking . Maria's Lessons https://lessons.lerntipp.at For students in economics and in the economic sciences Wed, 19 Apr 2023 06:47:29 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 Banking Exercise https://lessons.lerntipp.at/44/banking-exercise Wed, 12 Apr 2023 12:18:40 +0000 http://lessons.lerntipp.at/?p=44 Read More »Banking Exercise]]>

Revision Questions

  • Describe the basic functions of banks.
  • Why is it easier for banks than for private individuals to take on the risk of default?
  • Explain the terms “sight deposits” and “deposit base”.
  • Explain the balance sheet of a bank using the terms:
  • deposits, loans, liabilities, assets, owner’s funds, creditor’s funds.
  • The interest rate of a loan varies according to …………………………………………………………………………….
  • Why are overdraft facilities on current accounts a very convenient way of financing for a business?
  • Outline the economic importance of a collateral loan.
  • Explain the handling and the economic importance of a mortgage loan.
  • You are granted a mortgage loan of EUR 2,000,000 with an interest rate of 10 % p.a., the monthly annuity is EUR 20,000. Use this example to explain the annuity loan.
  • Use the overdraft facility on current accounts and the mortgage loan to highlight the difference between a revolving and a single credit.

 

 

]]>