CXC Principles of Business Exam guide: Section 7: Business Finance

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CXC CSEC Principles of Business Exam guide: Section 7: Business Finance

CXC CSEC Principles of Business Exam Guide Profile 2: Production, Marketing and Finance Section 7: Business Finance
	SPECIFIC OBJECTIVES The students should be able to:	CONTENT
1.	Describe the role of commercial banks;	Functions of commercial banks
2.	Outline the services offered by commercial banks;	Services offered by commerical banks.
3.	List the functions of the Central bank;	Functions of the Central bank.
4.	Describe the relationship between the Central bank and and the commercial banks;	The regulatory role of the Central bank in its dealings with commercial banks.
5.	Outline ways used by individuals to manage personal income;	Allocation of income relative to committments through the use of a budget.
6.	Identify sources of long-term and short-term financing;	Sources of short-term and long-term financing including loans from government agencies.
7.	Differentiate between saving and investment;	Forms of savings: (a) as deferred income and investment as risk bearing to make a profit. (b) forms of savings, for example: (i) sou sou (meeting turn;partner; box hand); (ii) credit unions (iii) banking (iv) insurance (c) forms of investment, including the stock market and the use of personal funds to create or participate in a business; credit union; unit trust (mutual funds); property.
8.	Explain the role of the stock market;	The role of the stock market: (a) concept of the stock market (risks and benefits); (b) terminologies (bull, bear, stag. cross-list); (c) online trading.