Exam questions on Financial instiutions

Question 1

Explain two features of a credit union ( 4 marks )

Answer 1

Credit unions usually offer lower interest rates to borrowers so can offer better deals to customers.

Credit unions are able to help people in specific communities because they are locally based.

Question 2

Give 2 advantages to the consumer of using pawnbrokers . ( 2 marks )

Answer 2

Borrow money against an asset.
Fast method of receiving cash/ credit.

Question 3

Explain 2 features of the Bank of England

Answer 3

The bank of England is responsible for managing UK monetary value and maintaining the supply of money in the economy.