Business Finance Basics
This term describes money that banks and other financial institutions make available for commercial use.
What is Business Finance?
This financial instrument allows a person to spend funds made available by the bank up to a specified limit.
What is a credit card?
This document outlines an individual’s income and planned expenses.
What is a budget?
This organization supervises the insurance, securities, and pensions industries in Jamaica.
What is the Financial Services Commission (FSC)?
This financial statement shows whether a business is profitable.
What is an income statement (profit and loss statement)?
These financial institutions are owned by their members and provide banking services like credit unions
What are building societies?
This can be deposited into a bank account and cashed over the counter.
What is a cheque?
This is money set aside from personal income, often kept in an interest-bearing account.
What are savings?
This regulatory body ensures the financial soundness of deposit-taking institutions.
What is the Jamaica Deposit Insurance Company (JDIC)?
This statement illustrates a business's net worth through its assets and liabilities.
What is a balance sheet (statement of financial position)?
These financial agencies include credit unions, insurance companies, and building societies.
What are non-bank financial institutions?
Commercial banks provide these services to clients who want advice about investments or securities.
What are advisory services?
Unlike savings, this financial strategy involves risk but can yield higher returns.
What is investment?
The Central Bank can require commercial banks to hold a percentage of their deposits in reserve.
What is the cash reserve ratio?
This statement tracks the inflows and outflows of cash in a business.
What is a cash flow statement?
This agency is responsible for Jamaica’s monetary policy and acts as a banker to all banks.
What is the Central Bank?
This type of deposit account offers a higher interest rate than a regular savings account.
What is a fixed deposit account?
A traditional savings system in some cultures where participants pool money for one member each cycle.
What is sou sou (partner, box hand, or meeting turn)?
This is the term for the Central Bank providing funds to banks in financial distress.
What is lender of last resort?
What is a balance sheet?
This market allows buyers and sellers of stocks and securities to meet and trade
What is the stock exchange?
A bank customer uses this to set up automatic payments for recurring expenses.
What is a standing order?
After taxes and deductions, individuals must manage this remaining portion of their earnings.
What is disposable income?
This public institution manages the currency of a country and controls the money supply.
What is the central bank?
This type of financing is repaid within 1 to 5 years.
What is short-term financing?