Role of Financial Markets

3. The government will pay back the initial amount which was paid for the bond by this date.
5. Measures how much of the owner's money a bank has compared to its loans.
7. A type of financial market where you can buy and sell foreign currencies like the dollar.
9. A record of banks' finances showing their assets and liabilities.
10. The amount that the bondholder receives each year in interest from the government.
12. The interest rate received on the bond in relation to its price.
14. Organisation that make investments to make lots of money
16. Items that a bank owns e.g. cash and loans
17. A bank with lots of accessible cash compared to the amount of money it has loaned out.
19. Money in debit/credit accounts, savings accounts, cheques and government bonds.
20. As banks increase profit by loaning more money, they will decrease their liquidity as they have less accessible cash.
21. When a bank has large amounts of the owner's money compared to its loans.

1. A type of financial market where you can buy and sell long-term financial assets like a £3 billion company loan.
2. The annual interest rate that the government pays on the bond (does not change when the bond price changes).
4. Deal with everyday transactions like paying into a savings account, taking out a mortgage or withdrawing cash.
5. A way of raising finance through borrowing from investors. Finance raised in this way must be paid back to the investors - it is a type of debt.
6. A type of financial market where you can buy and sell short-term financial assets like overdrafts.
8. Money that can be accessed immediately i.e. cash in debit/credit accounts.
11. An asset, which can be easily turned into cash.
13. When a company raises finance by borrowing money which has to be paid back.
15. When a company raises finance by selling a share in the company.
18. Items that a bank owes e.g customer deposits.