B Personal Finance Sector

Question 1

Bank of England

Answer 1

UK central bank it supervises other banks and financial institutions, issues banknotes, maintains UK financial stability.

Question 2

ADVANTAGES & DISADVANTAGES

Answer 2

Question 3

Banks

Answer 3

Banks Handles financial transactions and stores money on behalf of its customers

Question 4

ADVANTAGES & DISADVANTAGES OF BANKS

Answer 4

Question 5

Building societies

Answer 5

Building societies Handle financial transactions and store money on behalf of their members

Question 6

BULDING SOCIETIES ADVANTAGES & DISADVANTAGES

Answer 6

Question 7

Credit unions

Answer 7

Credit unions Not-for-profit organisations that handle financial transactions and store money on behalf of their members. Members are the owners.

Question 8

CREDIT UNIONS ADVANTAGES & DISADVANTAGES

Answer 8

Question 9

National Saving and Investments

Answer 9

National Saving and Investments A government back organisation that offers a secure saving option

Question 10

Insurance companies

Answer 10

Insurance companies These are businesses that protect against the risk of loss in return for a premium

Question 11

Advantages & Disadvantages Of Insurance Companies

Answer 11

Question 12

National Savings and Investments

ADVANTAGES
DISADVANTAGES

Answer 12

Question 13

Pension companies

Answer 13

Pension companies Businesses that sell policies to individuals, either privately or through employers, to allow them to save now to fund retirement in the future

Question 14

Pawnbrokers

Answer 14

Pawnbrokers Businesses or individuals who loan money against the security of a personal asset, e.g. an item of jewellery.

Question 15

Payday loans

Answer 15

Payday loans Organisations that offer a short-term source of finance used to bridge the gap between now and the next pay day. Using for small amounts at very high rates of interest.

Question 16

Methods of interacting with customers

Answer 16

Methods of interacting with customers Branch Online banking Telephone banking Mobile banking Postal banking

Question 17

The Financial Conduct Authority (FCA)

Answer 17

The Financial Conduct Authority (FCA) The FCA is an independent organisation, funded by membership fees charged to financial service providers.

Question 18

Financial Ombudsman Service (FOS)

Answer 18

Financial Ombudsman Service (FOS) Appointed by the government to represent consumer in disputes with financial service providers.

Question 19

The Financial Service Compensation Scheme (FSCS)

Answer 19

The Financial Service Compensation Scheme (FSCS) If the financial service providers is unable to pay compensation to a consumer, e.g. it is bankrupt, the FSCS will do so.

Question 20

Office of Fair Trading (OFT)

Answer 20

Office of Fair Trading (OFT) A government organisation established to regulate all markets – including financial markets. It is now part of the FCA.

Question 21

Consumer Credit Legislation

Answer 21

Consumer Credit Legislation Laws passed by the UK government to enforce the regulation of any organisation offering credit to consumers

Question 22

Citizens Advice

Answer 22

Citizens Advice Run by charities – offers advice on a wide range of financial issues

Question 23

Independent Financial Advisor (IFA)

Answer 23

Independent Financial Advisor (IFA) Professionals who offer independent advice to their clients on financial matters, e.g. savings, investments, mortgages and pensions

Question 24

Price Comparison Websites

Answer 24

Price Comparison Websites Prices are collated for similar goods/services within an industry allowing consumers to make comparisons and find the best deals

Question 25

Money Advice Service

Answer 25

Money Advice Service A government organisation – offers free and impartial financial advice.

Question 26

Debt Counsellors

Answer 26

Debt Counsellors A professional who offers independent advice on how best to manage debt

Question 27

Individual Voluntary Arrangements (IVAs) bankruptcy

Answer 27

Individual Voluntary Arrangements (IVAs) bankruptcy Government organisation – that allows individuals to declare themselves bankrupt – whilst agreeing to pay part or all of the money they owed to creditors though an insolvency practitioner