Aim A

Question 1

Unit of account

Answer 1

something that can be used to value goods and services, record debts and make calculations.

Question 2

means of exchange

Answer 2

something that is excepted in exchange for a good or service

Question 3

store of value

Answer 3

something that remains valuable over a long period

Question 4

legal tender

Answer 4

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

Question 5

personal attitudes

Answer 5

the way people act and make decisions based around money

Question 6

life stages

Answer 6

the age in which you are in life and your main priorities surrounding money

Question 7

culture

Answer 7

different cultures and beliefs have different rules on finance and money spending

Question 8

life events

Answer 8

what is happening in someone’s life which may effect their financial position

Question 9

external influences

Answer 9

factors beyond a company’s control that affect the success of a business

Question 10

interest rates

Answer 10

the amount a lender charges a borrower, shown as a percentage

Question 11

avoid debt

Answer 11

the actions to take so you are not spending more money than you have

Question 12

control costs

Answer 12

identifying and reducing expenses to increase profits

Question 13

legal action/repossession

Answer 13

if someone is unable to pay their expenses they can be repossessed by the owner

Question 14

solvent

Answer 14

When the value of its assets is greater than its liabilities

Question 15

Credit rating

Answer 15

estimate of the level of risk involved in lending money to someone or a business

Question 16

bankruptcy

Answer 16

when you aren’t liable for most of your debts you don’t have to pay for them

Question 17

manage money

Answer 17

the way which you choose to save money

Question 18

income and savings generation

Answer 18

the income people makes usually depends on age and older generations are likely to have more savings

Question 19

financial targets and goals

Answer 19

the set amount of money a business or person aspires to have

Question 20

CHAPS

Answer 20

Payments made yo the UK that are guaranteed to arrive on the day they are made.

Question 21

FPS

Answer 21

Faster payment service

Question 22

BACS

Answer 22

Electronic system that transfers money from one bank account to another

Question 23

Mobile banking

Answer 23

Carrying out financial transactions using a mobile device

Question 24

Store cards

Answer 24

Issued by retail outlets so customers can purchase their products on credit.

Question 25

Charge cards

Answer 25

Cards that low you to purchase something now and pay for it later

Question 26

Contactless card

Answer 26

Money transferred through a contactless terminal

Question 27

Prepaid card

Answer 27

Plastic alternative to money, load with money first

Question 28

Standing order

Answer 28

Way of setting up regular payments fixed from a bank account

Question 29

Direct debit

Answer 29

Authorises payment to be taken from a bank account

Question 30

Electronic transfer

Answer 30

Payment room one account to another, using no cash

Question 31

Cheque

Answer 31

Written order that takes money from one aunt to another, any amount allowed

Question 32

Credit card

Answer 32

Card issued by a financial institution with a credit limit o how much you can spend.

Question 33

Debit card

Answer 33

Deducts money straight from a bank account

Question 34

Cash

Answer 34

Physical notes an coins

Question 35

Standard account

Answer 35

Most common account, standard features to pay and withdraw money, will have a debit card and may prearrange overdraft.

Question 36

Basic account

Answer 36

Current account used by people who have bad credit ratings, limited facilities and no overdraft available.

Question 37

Premium/packaged account

Answer 37

Has a monthly fee in return for additional benefits. May not always have value for money

Question 38

Student account

Answer 38

Designed to benefit students, specially those at university.

Question 39

Overdraft

Answer 39

Let’s you borrow extra money through your current account.

Question 40

Personal loan

Answer 40

Allows you to borrow money or a specific purpose.

Question 41

Mortgage

Answer 41

Long term loan, usually 25 years to buy property

Question 42

Hire purchase

Answer 42

Paying off an asset in a regular payment plus interest

Question 43

Payday Loan

Answer 43

Short-term source of finance that is paid back when you are paid. Very high interest and used usually in emergency

Question 44

Car insurance

Answer 44

A legal requirement in the UK covers for accidents, fire or theft depending on kind purchased

Question 45

Home insurance

Answer 45

Covers the actual building such as fire damage

Question 46

Content insurance

Answer 46

Covers things such as electric, carpets and furniture and also protects contents inside and when they are outside the house too

Question 47

Life insurance

Answer 47

Policy that pays a lump sum upon death, many have life insurance to secure a mortgage

Question 48

Travel insurance

Answer 48

Protects you when abroad against illness, flight delays or cancellations or luggage lost or stolen

Question 49

Pet insurance

Answer 49

Protects owners of any pets expenses such as vet fees or if the pet is lost, stolen or injured

Question 50

Health insurance

Answer 50

Covers families and employees via a payment plan, may be dentist or opticians