B1 - Financial instiutions.

Question 1

what is the definition of a financial institutions

Answer 1

Financial institutions are organisations that offer financial services to individuals and to businesses.

Question 2

what do financial institutions include ?

Answer 2

The ability to
- deposit money.
- obtain credit
- make investments
- offering advice in matters of personal and business finance.

Question 3

what are the 9 financial institutions ?

Answer 3

Bank of England, Banks , Building societies , Credit unions , Payday loans , Insurance companies, Pension companies, National saving and investment, Pawnbroker.

Question 4

what is the definition of bank of England ?

Answer 4

It is the central bank of England and Wales which issues legal tender, manages the national debt and sets interest rates.

Question 5

what is the definition of Banks ?

Answer 5

A bank is an institution that delas in money and its substitutes and provides other money related services.

Question 6

what is the definition of building societies ?

Answer 6

A building society is a financial organization that is owned and run by its members.

Question 7

what is the definition of credit unions ?

Answer 7

Credit unions is a non - profit cooperative whose members can borrow from pooled deposits at low interest rates.

Question 8

what is the definition of Payday loans ?

Answer 8

Payday loans are short - term , high - interest loans based on your income. They are characterized by high interest rates.

Question 9

what is the definition of insurance companies ?

Answer 9

an insurance company is a company that provides financial protection or reimbursement against losses from a policyholders risks.

Question 10

what is the definition of pension companies ?

Answer 10

Pension companies offer employees security in retirement by providing a guaranteed income stream.

Question 11

what is the definition of national savings ?

Answer 11

National savings are the sum of private and public saving.

Question 12

what is the definition of investment ?

Answer 12

Investment is the act of putting money or effort into something to make a profit or achieve a result.

Question 13

what is the definition of a pawnbroker

Answer 13

A pawnbroker is an individual or business that offers secured loans to people with items of personal property.

Question 14

what are the advantages of the bank of England ?

Answer 14

• ensuring stability of money.
• Promoting financial innovation.
• fostering consumer protection.

Question 15

what are the disadvantages of the Bank of England ?

Answer 15

• decisions can affect interest rates and inflation impacting businesses and consumers.
• It faces scrutiny and pressure from various stakeholders

Question 16

what are the advantages of Banks ?

Answer 16

• safety of public wealth.
• availability in cheap loans.
• Development in rural areas.

Question 17

what are the disadvantages of banks ?

Answer 17

• lower saving rates.
• high balance requirements or high maintenance fees.
• risk of fraud and public debt.

Question 18

what are the advantages of Building societies ?

Answer 18

• better rates , They often offer competitive savings and mortgage rates.
• offer more specialized products.
• may provide a more personal experience than banks.

Question 19

what are the disadvantages of building societies ?

Answer 19

• products may come with restrictions.
• may not be very convenient.
• less diversified.

Question 20

what are the advantages of credit unions ?

Answer 20

• loans usually have lower interest rate.
• credit unions work to benefit members , not to generate profit.
• can be easier to access credit.

Question 21

what are the disadvantages of credit unions ?

Answer 21

• limited branch and access.
• fewer products and services.
• limited operating hours.

Question 22

what are the advantages of payday loans ?

Answer 22

• fast application process.
• small amounts can be borrowed.
• typically no credit check.

Question 23

what are the disadvantages of payday loans ?

Answer 23

• high cost
• risk of debt
• not legal in all states.

Question 24

what are the advantages of insurance companies ?

Answer 24

• provides financial assistance for individuals and businesses.
• helping in saving and investing.
• reducing the economic impact of disasters.

Question 25

what are the disadvantages of insurance companies ?

Answer 25

• costly premiums
• risk of claim denial.
• fixed insurance benefits losing value due to inflation.

Question 26

what are the advantages of pension companies ?

Answer 26

• investment risk protection.
• tax relief.
• employer contributions.

Question 27

what are the disadvantages of pension companies

Answer 27

• employees have no control over how their pension money is invested.
• not all pensions transfer if you change employers.
• they’re difficult to access.

Question 28

what are the advantages of National savings

Answer 28

• your money is totally secure as you’ re lending to the government.
• they offer different products such as premium bonds , saving bonds , savings account

Question 29

what are the disadvantages of national savings

Answer 29

• interest rates are falling
• you could be investing.
• the money could boost your retirement.

Question 30

what are the advantages of investment ?

Answer 30

• less tax.
• a saving plan that grows.
• investment is not limited to stocks.

Question 31

what are the disadvantages of investment ?

Answer 31

• possibility of loss.
• opportunity cost.
• returns are not guaranteed