Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Business- personal and business finance > Explore the personal finance sector > Flashcards

Explore the personal finance sector Flashcards

learning aim B

1
Q

Explain the bank of England

A

UK’s central bank with responsibility for maintaining a healthy level of financial stability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the responsibilities of the bank of england

A

issuing legal tender, setting interest rates, controlling national debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what are the advantages of the bank of england

A

responsible for protecting the economy, lends to banks, sets interest rates at a level designed to achieve a stable economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are the disadvantages of the bank of england

A

not a bank for members of the pubic, can raise interest rates making borrowing more expensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

explain what banks are

A

organisation that handles financial transactions and stores money on behalf of customers (holding deposits, making payments when instructed, supplying credit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are the advantages of banks

A

offer a range of services and account types, secure place to store money, pay interest on balances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are the disadvantages of banks

A

savings only protected up to £85,000, costs may be high to fulfil shareholder objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

explain building societies

A

organisations that handle transactions and store money on behalf of customers. the customers are part owners who can vote and get info

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are the advantages of a building society

A

offer a range of services and account types, secure place to store money, pay interest on balances, owned by members so prices are kept low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are the disadvantages of a building society

A

may lack business drive, savings only protected up to £80,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

explain credit unions

A

not for profit organisations that handle transactions and store money for customers, the customers vote and are the owners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are the advantages of credit unions

A

offer a range of services and account types, secure place to store money, owned by members so costs are kept low, often offer additional benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are the disadvantages of credit unions

A

savings only protected up to £80,000. may lack the business drive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

explain national savings and investments

A

government backed organisation that offers a secure saving option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are the advantages of national savings and investments

A

savings protected up to an unlimited amount, offers additional services, range of options (ISA, Bonds and Gilts)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are the disadvantages of national savings and investments

A

Required to give notice about withdrawals, rates are variable, not easy to access

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

explain insurance companies

A

businesses that protect against the risk of loss in return for a premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what are the advantages of insurance companies

A

protect against unexpected losses or expenses, wide range of services, easy and regular monthly payments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are the disadvantages of insurance companies

A

profit making organisations so premiums are charged, premiums are assessed on the degree of risk which may penalise members

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

explain pension companies

A

businesses that sell policies to individuals to allow them to save now to fund retirement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what are the advantages of pension companies

A

provides a structure to help plan for financial security after retirement, deductions can be taken directly from pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what are the disadvantages of pension companies

A

poor investment decisions may lead to disappointment, money already invested cannot be released prior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

explain pawnbrokers

A

businesses or individuals who loan money against the security of a personal asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what are the advantages of pawnbrokers

A

interest is not charged, quick way of acquiring cash, asset can be brought back within a set period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
what are the disadvantages of pawnbrokers
if the money is not repaid within the agreed date the asset will be sold on, amount given for the asset is often lower than the actual worth
26
explain payday loans
organisations that offer a short term source of finance used to bridge the gap between now and the next receiving wage
27
what are the advantages of pay day loans
a quick way of acquiring cash needed for a short period of time
28
what are the disadvantages of pay day loans
interest charges are likely to be high, often results in paying back a final sum higher than the initial amount borrowed
29
What are the different ways to communicate with customers
branch, online banking, telephone banking, mobile banking, postal banking
30
What is branch as a type of communication with customers
Physical places where the customer will visit to carry out transactions (face to face)
31
what are the advantages of branches as a form of communication
opportunity to build a relationship and trust, conducted there and then, advice can be offered, customers will have high level of confidence
32
what are the disadvantages of branches as a form of communication
needs to travel which is an extra cost, restricted to bank opening hours, may be long queues or waiting times
33
what is online banking as a from of communication
use of the internet to carry out banking transactions
34
what are the advantages of online banking as a form of communication
available 24/7, convenient, high degree of privacy
35
what are the disadvantages of online banking as a form of communication
takes time to set up, not suitable for cash withdrawals, increased risk due to cyber crime, facilities may be limited
36
what is telephone banking as a form of communication
transactions which are carried out over the telephone
37
what are the advantages of telephone banking as a form of communication
convenient, no additional charges
38
what are the disadvantages of telephone banking as a form of communication
full access may be limited to set hours, automated telephone systems may frustrate customers, higher risk of fraud
39
what is mobile banking as a form of communication
use of mobile devices (phones, tablets) to conduct financial transactions
40
what are the advantages of mobile banking as a form of communication
convenient, available 24/7, no additional charges
41
what are the disadvantages of mobile banking as a form of communication
need to download specific apps, higher security risk due to loss of mobile devices, prone to hackers
42
what is postal banking as a form of communication
use of postal service to carry out paper-based financial transactions
43
what are the advantages of postal banking as a form of communication
traditional method that people are comfortable with, does not require any additional technology or devices
44
what are the disadvantages of postal banking as a form of communication
can be slow due to the postal system, post can be lost
45
Describe what the financial conduct authority is and how it protects consumers?
independent organisation which has a remit to regulate the actions of providers of financial services, ensures practices are in the interest of the consumer, ensures standards are maintained
46
What are the roles of Financial Conduct Authority?
ensuring procedures and practices are in the interest of the consumer, using their powers to ensure standards are maintained
47
Describe what the Financial Ombudsmen Service is and how it protects consumers?
represents the interests of the consumer in disputes with financial service providers, only becomes involved if cannot be sorted with consumer and financial institution prior
48
Describe what the Financial Services Compensation Scheme is and how it helps and protects consumers?
pays compensation to a consumer of financial services if the service provider is unable to, protects consumers from loss
49
Describe what the Office of Fair Trading is and how it helps and protects consumers?
Encourages fair practices and healthy competition between financial institutions
50
Describe what the legislation of consumer credit is and how it helps and protects consumers?
These are laws that are passed by the government to enforce the regulation of any firm offering credit to customer
51
Explain citizen advice as a from of guidance and advice
A charity run organisation that offers advice on a range of issues
52
What are the advantages of citizen advice?
free service, face-to-face alongside online, mobile and telephone, wide range of areas covered
53
What are the disadvantages of citizen advice?
May not necessarily be professionals so knowledge may be limited
54
Explain the independent financial advisor as a form of guidance and advice?
professionals who offer independent advice to their clients on financial matters
55
what are the advantages of an independent financial advisor?
advice is offered by professionals who will take time to understand the financial situation
56
what are the disadvantages of an independent financial advisor?
Services are charged, and advice is not 100% guaranteed to be up to date or unbiased
57
Explain price comparison websites as a form of guidance and advice
Collate prices of similar goods/services within an industry allowing customers to make comparisons easily and find the best deals
58
what are the advantages of price comparison websites as a form of guidance and advice?
easy to access 24/7, free service, allows customers to make comparisons and find the best deal
59
what are the disadvantages of price comparison websites as a form of guidance and advice
not guaranteed 100% up to date, do not always cover all options, may be biased
60
Explain money advice service as a form of guidance and advice
government set up organisation which offers free and impartial advice in the UK
61
what are the advantages of money advice service?
advice is free and impartial, wide range of financial issues will be covered
62
Explain debt counsellors as a form of guidance and advice?
a professional who offers advice on how to manage debts
63
what are the advantages of debt counsellors?
advice is offered by a professional who specialises in debt management
64
what are the disadvantages of debt counsellors?
services will be charged for, and this only covers debt management
65
what are the disadvantages of money advice services
the advice is only available online or over the phone, advice may be more generic rather than personal, can take time to find and understand the advice
66
Explain individual voluntary arrangements as a form of guidance or advice?
government organisation that allows an individual to declare themselves bankrupt while agreeing to pay all or some of the debts to creditiors through insolvency practioners. Regular payments are made to the insolvency practitioner who then spreads this out between the creditors, deciding how much to pay each one
67
what are the advantages of individual voluntary arrangements
helps manage debt repayments and advice is independent and not bias
68
what are the disadvantages of individual voluntary arrangements
will affect future credit ratings, and set up and handling fees are charged

Business- personal and business finance (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions