Content Area a Flashcards
Functions of money
Unit of account
Means of exchange
2 advantages & disadvantages of credit cards
Loyalty schemes
Protection against purchases
Can encourage overspending and get into debt
Interest charged on cash withdrawals
3 advantages of debit cards
Widely accepted
Suitable for online transactions
Secure method of payment with low risk of theft
No need to carry cash
What is a standing order and give 2 advantages
An agreement with the bank to transfer a fixed amount of money to a third party account on a set date
Easy to set up
Automatic regular payments
An advantage of mobile banking
Convenient as it can be used at any time and place
Disadvantage of store card
Can encourage overspending
Only accepted in issuing store
Advantage of pre paid card
Can set a budget in advance to avoid overspending
2 features of a current account
Overdraft limit
interest paid
Interest charged
Feature of a standard account
Withdraw money
Pay for purchases
Feature of student current account
Agreed overdraft limits
Can get discounts which attracts young people
Feature of basic account
No monthly fee or overdraft facility, online banking
What is an overdraft
Allows you withdraw money that you do not have for short term needs
What is hire purchase
Allows you to use an item immediately but pay for it in regular instalments
Premium bonds
A government scheme where you can buy bonds which are placed into draws for cash prizes
Disadvantage of Bonds and gilts
Risk of losing the value of investments if the bond or guilt fails
