2.8 - The Role of Money and Financial Markets

• The financial sector is banks, building societies and other firms which provide loans, savings and other money-based products to households and businesses.
• A building society is a specific form of financial institution which is wholly owned by its borrowers and savers.
• A high street bank is a financial solution which provides basic retail banking services to consumers and small businesses
• Characteristics of money:

  • Medium of exchange
  • Store of value
  • Unit of account
  • Portable
  • Durable
  • Hard to Counterfeit
  • Divisable