Financial Institutions Flashcards
1
Q
Give features of the Bank of England
A
- UK’s central bank
- Issues legal tender
- Sets interest rates
- Independent from government
2
Q
Gives features of a bank
A
- Owned by shareholders
- Offer customers financial services like current and savings accounts
- Are reliable, secure and private
- May charge for certain services
3
Q
Give features of building societies
A
- Owned by members (account holders)
- Provide mortgages, savings accounts etc.
- Can offer better interest rates than banks
- Fewer branches leading to poor access
4
Q
Give features of credit unions
A
- Owned and run by members
- Not for profit organisations
- Offer savings/current accounts and loans
- limited funds
- Good cooperative group feel
5
Q
Give features of a National Savings and Investments institution
A
- Sells premium bonds
- Money invested in products used to finance
- Savings and investments are secure as government backed
- Poor interest rates, no interest payment on premium bonds
- Very secure and backed by government
6
Q
Give features of Insurance Companies
A
- Businesses that offer customers protection against loss in exchange for a premium
- Offer security and peace of mind
- Difficult to understand what is covered and what conditions are
7
Q
Give features of Pension Companies
A
- Businesses that let customers save in a personal pensions schemes for retirement
- Protected income is based on changing figures
- Funds are locked in and secure
- Penalties charged for early usage
8
Q
Give features of Pawnbrokers
A
- Businesses that loan money against the value of jewellery
- Interest is charged on loans
- Pawned items may be sold if not bought back by customer in certain time
- Instant cash for valuable asset
9
Q
Give features of Payday loan companies
A
- Businesses that offer short-term loans to people requiring cash between paydays.
- Immediate cash available for those with poor credit history
- Expensive and easy to get into a debt spiral
