Exam Practice - A1

Question 1

give two functions of money ( 2 marks )

Answer 1

unit of account ,
measure of value.

Question 2

give 2 reasons why a persons religious beliefs could impact a decision to take out a loan ( 2 marks )

Answer 2

some religious beliefs can only borrow money without repaying interest.

borrowing outside of their religious group is not permitted.

Question 3

outline 2 benefits of planning financial expenditure (4 marks ) ?

Answer 3

control costs to avoid getting into debt.
ensure timely payments to maintain your credit rating.

Question 4

discuss the personal attitudes of people in young adulthood towards borrowing and saving ( 6 marks ) ?

Answer 4

Borrowing
- may borrow from family members due to being unable to access larger loans due to earning power.
- more likely to rent a home than borrow for a mortgage.
-credit cards /store cards viewed as easy money.

Saving
- may be less likely to save as they feel they do not need to save given their relatively young age.
-saving likely to be viewed only as necessary for obtaining a mortgage.
-may earn limited amounts so less likely to be able to save.