B) 1. Types Of Organisations Flashcards
1
Q
Advantages of Bank of England
A
- Responsible for protecting the financial stability of the economy as a whole
- Sets interest rates at a level designed to help achieve a stable economy
2
Q
Disadvantages of Bank of England
A
- Not a bank for members of the general public
- Can raise interest rates making borrowing more expensive
3
Q
Advantages of Banks
A
- Offer a range of services and account types
- Pay interest on credit balances on most types of accounts
4
Q
Disadvantages of Banks
A
- Savings are only protected to a certain amount so if bank goes under, anything over that is lost.
- May charge for certain accounts and services
5
Q
Advantages of Building societies
A
- Can offer better interest rates and savings than banks
- Offer a range of services and account types
6
Q
Disadvantages of Building societies
A
- Fewer branches leading to poorer access
- savings are only protected to a certain amount so if building society goes bankrupt, anything over that is lost
7
Q
Advantages of Credit unions
A
- Offer a range of services and account types
- Often offer additional benefits to the community or a good cause
8
Q
Disadvantages of Credit unions
A
- More limited funds and opportunities than commercial banks and building societies
- Savings only protected up to a certain amount so if credit union goes bankrupt, anything over will be lost
9
Q
Advantages of National savings and investments
A
- Gov backed so offer 100% security on savings
- Offers additional services/methods of saving (e.g premium bonds)
10
Q
Disadvantages of National savings and investments
A
- Rates are variable
- not easy access due to lack of high street presence
11
Q
Advantages of Insurance companies
A
- Protect against unexpected losses or financial expenses
- wide range of services and levels of cover to suit needs of individuals
12
Q
Disadvantages of Insurance companies
A
- Can be difficult to understand what is covered and what the conditions of insurance are
