Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > Finance exam > Flashcards

Finance exam Flashcards

1
Q

Definition of cash

A

notes and coins in a wide range of denominations

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

Definition of debit card

A

issued by banks with payments for goods and services being deducted directly from a current account

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

Definition of credit card

A

issued by financial institutions allowing customers to delay payments for goods and services

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

definition of cheque

A

a written order to a bank to make a specific payment for a specific amount of money from one person’s account to another account

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

definition of electronic transfer

A

payment is transfered directly from one bank account to another

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

direct debit definition

A

an agreement made with the bank allowing a third party to withdraw money on an account for a set day to pay for goods or services recieved e.g a gym membership

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

contactless card definition

A

cards with an enbedded chip and antenna that enable customers to wave to their card over a reader at a point of sale for an automatic transaction

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

standing order definition

A

an agreement made with the bank to transfer a fixed sum of money to a third-party account on a set date on a regular basis e.g a fixed loan repayment

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

pre-paid card definition

A

money is uploaded onto a card with transactions then withdrawn to reduce the balance

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

charge card definition

A

issued by financial institutions allowing customers to delay payments for goods and services for a short period of time with the balance being paid off in full at each statement date

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

store card definition

A

issued by a retail outlet to allow customers to delay payments for goods and services - similar to a credit card but only for a specified store

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

mobile banking definition

A

the ability to carry out financial transactions using mobile devices such as phones or tablets

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

What is Bankers Automated Clearing Service (BACS) Faster Payment

A

A system that allows the transfer of payments directly from one bank account to another in 3 working days (unless faster payment is available)

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

What is Clearing House Automated Payment Systems (CHAPS)

A

A system that allows the transfers of payments directly from one bank account to another, usually on the same day

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

What is an Individual Voluntary Arrangement (IVAs) bankruptcy

A

A government organisation which allows an individual to declare themselves bankrupt while agreeing to pay off all or part of the money they owe to the creditors

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

what are advantages of an IVA

A

you can combine multiple debts into one debt, this allows an individual to manage and stay up to date with multiple debts at once

based on what the individual can afford

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

6 marker scheme for ad and disad

A

advantage, example, relate to scenario
advantage, example, relate to scenario
advantage, example, relate to scenario
disadvantage, example, relate to scenario
disadvantage, example, relate to scenario

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

what are the disadvantages of IVA

A

affect individuals credit rating,
also a long term debt, therefore take a long time to pay off

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

12 marker scheme

A

short intro, relate to scenario and purpose what they need (short para)
1. option 1 go through advantages and disadvantages, relate to scenario
2. option 2 go through ads and dis, RTS
(Go through all options)
Compare 2 favorites
conclude, refer to situation and purpose for the chosen option, elaborate

20
Q

what is a standard current account

A

this type of account provides full day-to-day banking facilities, such as cheque book, debit card, easy access to your money and an authorised overdraft fascility

21
Q

what is a packaged, premium account

A

this type of account usually has an annual fee or additional charge in return for offering extra incentives (rewards). These benefits can vary but may include offers such as discounted home insurance, no fee overdraft, and premium access to popular event tickets

22
Q

what is a basic account

A

this account offers limited features and would be typically held by a person with no credit history in the UK or a poor credit history

23
Q

what is a student account

A

these are designed to assist young people and students to become prudent with their personal finances. They may come with bonus features, such as interest free overdraft facilities

24
Q

what is overdraft (type of borrowing)

A

allows an individual to withdraw money that they do not actually have in their current account

25
Q

what is a personal loan (type of borrowing)

A

allows an individual to borrow a set amount of money which is to be repaid in regular installments, with interest

26
Q

what is a hire purchase (type of borrowing)

A

allows an individual to have use of an item immediately but pay for it in regular instalments. The property is only owned by the individual when the final instalment has been paid off

27
Q

what is a mortgage (type of borrowing)

A

a long term loan to fund the purchases of assets e.g a property which will be paid off over a long period of time e.g 25 years in time and recieving wage

28
Q

what is a credit card

A

allows an individual to pay for goods or services using a card with a statement issued at the end of each month. The balance can be paid in full without incurring interest, or in smaller amounts without interest charge

29
Q

what is a pay day loan

A

a short-term source of finance that can help to bridge the gap between the present moment in time and recieving a wage

30
Q

What is an Individuals Savings Account (ISA)

A

a tax-free way to save or invest

31
Q

What is a Deposit and Savings account

A

an account where interest is paid on the balance

32
Q

what are types of financial institutions

A

Bank Of England, banks, building societys, credit unions, pension companies, pay-day loans, pawnbrokers

33
Q

Who are Citizens Advice

A

an organisation, run by charities, that offers a advice on a wide range of issues both financial and non-financial

34
Q

What are Independent Financial Advisors (IFA)

A

Professionals who offer independent advice to their clients on financial matters e.g savings, mortgages and investments

35
Q

What is a Money Advice Service

A

a government organisation set up to offer free and impartial financial advice in the UK

36
Q

What is a debt counsellor

A

a professional who offers independent advice on how best to manage debt

37
Q

what is debt factoring

A

selling the debts of a business to a third party in order to recieve a quick cash injection

38
Q

what is leasing

A

paying to use an asset in instalments, however the ownership of the asset remains with the supplier throughout the lease agreement

39
Q

what is trade credit

A

a period of time, offered by suppliers, to allow the customer to purchase now and pay later

40
Q

what is grants

A

a lump sum of money provided to a business by the government or another organisation to be used for a specific purpose

41
Q

what is break-even analysis

A

Break-even is the point at which a business is not making a profit or a loss. The money recieved from sales is the same as the money being spent on costs
Total Revenue = Total Costs

42
Q

what are fixed costs

A

costs that do not vary with output. They remain the same e.g rent

43
Q

what is a cash flow forecast

A

this tries to predict the cash flowing into and out of a business. A healthy cashflow is crucial to survival of a business

44
Q

what is liquidity

A

measures a firms ability to meet short-term cash payments

45
Q
A

Business (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions