FA 1 Section - Banking | Receiving and making payments
17 important questions on FA 1 Section - Banking | Receiving and making payments
What is a retail bank?
What is an investment bank?
- Stock market flotations
- Mergers
- Acquisitions
- Bonds
- shares
What is a central bank?
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Considering a business
- What is a current account
- Overdraft
- Surplus funds
Bank account that enables a business to make transactions. Usually pays low interest.
Overdraft
If you need to spend more for a short period of time you can ask the bank for an overdraft which allows you to continue spending when you have no money with the bank.
Surplus funds
Saving account where the business can keep extra money.
What is the central bank for
- The UK
- Europe
- USA
What is paying in slip?
What is a cheque requisition form?
What kind of payments need a cheque requisition form? [3]
- Donations;
- Deposits for hiring a venue or renting a piece of equipment;
- Advances to employees who are travelling;
Cheque
- What is a cheque?
- Who is the drawer or payer?
- Who is the payee
- What is the cheque stub?
- What is an important rule?
Cheque stub is where you write the name of the payee
Never sign a cheque before completely filled out so there will be no misuse.
- What is a clearing system?
- What is dishonoured or bounced?
The check returns unpaid.
How do you cancel or stop a check?
What is a bankers draft?
Where should a business store cash?
What is direct credit?
What is a reconcilation?
What is an aged payables analysis?
What is a remittance advice?
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