CXC Principles of Business Exam guide: Section 7: Business Finance

CXC CSEC Principles of Business Exam guide: Section 7: Business Finance

CXC CSEC Principles of Business Exam Guide

Profile 2: Production, Marketing and Finance

Section 7: Business Finance


The students should be able to:


Describe the role of commercial banks;

Functions of commercial banks

2. Outline the services offered by commercial banks;

Services offered by commerical banks.


List the functions of the Central bank;

Functions of the Central bank.


Describe the relationship between the Central bank and and the commercial banks;

The regulatory role of the Central bank in its dealings with commercial banks.

5. Outline ways used by individuals to manage personal income;

Allocation of income relative to committments through the use of a budget.

6. Identify sources of long-term and short-term financing;

Sources of short-term and long-term financing including loans from government agencies.


Differentiate between saving and investment;

Forms of savings:

(a) as deferred income and investment as risk bearing to make a profit.

(b) forms of savings, for example:

(i) sou sou (meeting turn;partner; box hand);

(ii) credit unions

(iii) banking

(iv) insurance

(c) forms of investment, including the stock market and the use of personal funds to create or participate in a business; credit union; unit trust (mutual funds); property.

8. Explain the role of the stock market;

The role of the stock market:

(a) concept of the stock market (risks and benefits);

(b) terminologies (bull, bear, stag. cross-list);

(c) online trading.


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