Fill in the blanks: Financial services include ___, ___, and ___ as types.

Capital market services, money market services, and retail services.

True or False: Financial services are predominantly a product of the retail banking sector.

False. Financial services encompass a wide range of institutions, including commercial banks, insurance companies, and investment firms.

What is the significance of housing finance in economic development?

Housing finance contributes to employment generation, infrastructure development, rural housing, and reflects cultural values.

What are the advantages of lease financing from the perspective of the lessee?

Lease financing allows immediate asset use, tax advantages, lower costs compared to other financing sources, and fixed payments that aid budgeting.

Fill in the blank: The process of factoring involves the sale of ___ to a third party for immediate cash.

Accounts receivable.

Which two types of financial activities are primarily recognized in the banking sector?

Fund-based activities and fee-based activities.

What role do credit rating agencies play in the financial market?

Credit rating agencies assess and assign ratings to debt issuers, providing insights into credit quality and influencing investment decisions.

Explain the term 'non-interest income' in the context of banking.

Non-interest income is crucial for banks.

• Includes fees from services.

• Supports revenue diversification.

• Enhances financial stability.

Fill in the blank: The accounting of lease rentals in finance leases ensures that the lessor's ___ is recovered.

Investment.