Features of Financial Institutions

Question 1

Bank of England

Answer 1

UK central bank ensure financial stability of the UK
Sets interest rates

Question 2

Banks

Answer 2

Handle financial transactions and stores money on behalf of the general public

Question 3

Building societies

Answer 3

Provide financial services to the public such as day to day banking, mortgages and credit

Question 4

Credit Unions

Answer 4

A member owned financial cooperative, controlled by its members and operated on the principle of helping people

Question 5

National Saving and Investment

Answer 5

A government backed organisation that offers a secure savings option. It offers a range of options including ISAs, premium bonds and gilts

Question 6

Insurance companies

Answer 6

These are for profit organisations that protect people against loss in return for a monthly premium

Question 7

Pension Companies

Answer 7

Sell policies to individuals or companies that enable themselves or their employees to save money for future retirement

Question 8

Pawnbrokers

Answer 8

Loan money on to individuals and secure this loan against an asset

Question 9

Payday loans

Answer 9

Short term loans that are involved to bridge the gap between one payday to another in the case of an emergency