A1- functions and role of money

Question 1

definition-unit of account

Answer 1

a standard unit of money used to measure value, record debts and calculate profits or losses.

Question 2

definition-means of exchange

Answer 2

system used to facilitate the purchase and sale of goods and services between parties.

Question 3

definition-store of value

Answer 3

an asset that maintains its value, rather than depreciating.

Question 4

definition-legal tender

Answer 4

the coins or banknotes that must be accepted if offered in payment of a debt

Question 5

definition-personal attitudes

Answer 5

individuals will vary in their attitude to risk and reward as well as saving and borrowing.

Question 6

definition-life stages

Answer 6

the different ages and phases of life that people go through as they grow and learn

Question 7

definition-culture

Answer 7

the ideas, customs and social behaviour of a particular person or society. different cultures have different beliefs on how an individual should handle thier money.

Question 8

definition-life events

Answer 8

a significant occurance in a persons life that can have a physiological impact

Question 9

definition-external influences

Answer 9

factors that affect a business or individual that are outside of their control

Question 10

definition-interest rates

Answer 10

the percentage of the amount of money borrowed or saved that is paid or recieved in interest over a year

Question 11

definition-avoid debt

Answer 11

the practice of not getting into debt or avoiding the act of paying back debt

Question 12

definition-control costs

Answer 12

the process of identifying and reducing a business expense to increase profits

Question 13

definition-legal action/repossession

Answer 13

legal process where a mortgae lender or secured loan provider takes ownership of a property

Question 14

definition-solvent

Answer 14

having assets in excess of liabilities - able to pay ones debt

Question 15

definition- credit rating

Answer 15

an opinion about how likely a person or business is to repay a loan or debt

Question 16

definition-bankruptcy

Answer 16

a legal status that allows people to deal with debts thay can’t pay

Question 17

definition-manage money

Answer 17

the process of planning and tracking how an individual or group uses their money

Question 18

definition-income and savings generation

Answer 18

used to describe an investment or business activiry that makes money - household saving, income generation, net household saving

Question 19

definition- financial targets and goals

Answer 19

the personal, big-picture objectives you set for how you will save and spend money

Question 20

definition-insurance

Answer 20

a contract, represented by a policy in which a policy holder recieves financial protection or reimbursement against losses from an insurance company

Question 21

definition-inflation

Answer 21

a measure of how much prices for goods and services increase over times