Identify the services provided by banks and financial institutions for their business customers.
Banks and other financial institutions offer today's business customers a tempting array of services. Among the most important and attractive banking services are savings accounts and certificates of deposit, checking accounts, short- and long-term loans, and credit-card and debit-card processing. Increased use of electronic funds transfer systems (automated teller machines, automated clearinghouse systems, point-of-sale terminals, and electronic check conversion) also will change the way that business firms bank and conduct typical business transactions.
For firms in the global marketplace, a bank can provide letters of credit and banker's acceptances that will reduce the risk of nonpayment for sellers. Banks and financial institutions also can provide currency exchange to reduce payment problems for import or export transactions.
Learn More :
Mastering Financial Management
- Evaluate the advantages and disadvantages of long-term debt financing.
- Evaluate the advantages and disadvantages of equity financing.
- Describe the advantages and disadvantages of different methods of short-term debt financing.
- Summarize the process of planning for financial management.
- Identify a firm's short- and long-term financial needs.
- Understand why financial management is important in today's uncertain economy.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.