Financial Institutions

Question 1

What is the role of the Bank of England?

Answer 1

must ensure it is difficult to counterfeit notes, ensure that money remains secure and valid, keep prices stable through controlling interest rates

Question 2

Banks

Answer 2

a financial institution licensed to receive deposits and make loans

Question 3

Building societies

Answer 3

a financial organization which pays interest on investments by its members and lends capital for the purchase or improvement of houses

Question 4

Credit unions

Answer 4

a non-profit-making money cooperative whose members can borrow from pooled deposits at low interest rates

Question 5

National savings and investments

Answer 5

a government backed form of savings account, meaning it is a more secure way to store money

Question 6

Insurance companies

Answer 6

companies that provide and sell insurance; car, home, life, travel, pet, health

Question 7

Pension companies

Answer 7

three types of pensions; state pension, occupational pension, and personal pension

Question 8

Pawnbrokers

Answer 8

an individual or business that offers secured loans to people, with items of personal property used as collateral

Question 9

Payday loans

Answer 9

a relatively small amount of money lent at a high rate of interest