b) is the name of a city in Switzerland where the Committee on Banking Supervision meets

c) stands for Bank Authority and Supervision for E-payments and Liquidation

2 Liquidity:

a) is a synonym for current transactions

b) how easy it is for an asset (valuables belonging to you, investments ...) to be transformed into cash quickly

c) means coins and banknotes

3 The credit risk is:

a) if people don't pay the amount due on their credit cards

b) if customers don't trust their bank any longer

c) if a borrower does not have enough money to pay back

4 clearing means:

a) when you write your account number on the back of a cheque to deposit it in your account

b) when banks process and settle the payment of transactions (cheques, credit cards ...)

c) accounting for all the bank transactions in order to clear the accounts once a year

Here are a few activities you can research on this week's topic:

1 Enquire about the interest you can get on a savings account and the interest you have to pay on a credit card and mortgage. What do you notice?

2 Learn to write a cheque. Ask your parents to show you how to fill in a cheque and practise it!

3 With your parents, write a list of the main things they pay for and make a spreadsheet indicating how they pay (cheque, credit card, transfer, autopay...) and how often.

Answers

1. b, 2. b, 3. c, 4. b