Financial Services

Question 1

What is a financial institution

Answer 1

A financial institution provides financial services for its customers, including storing their money, managing payments and providing loans.

Question 2

Name types of financial institutions

Answer 2

> Commercial banks
Credit unions
Building societies
The post office (An Post).

Question 3

Define a comercial bank and example

Answer 3

A commercial bank is a bank that offers financial services to the general public and to businesses eg AIB

Question 4

What services to financial institutions provide to manage financial resources

Answer 4

> Current accounts
Deposit accounts
Bill payment and money transfers
Internet and telephone banking
Credit cards
Foreign exchange services
Loans.

Question 5

What is a current accounts

Answer 5

Current accounts are offered by the commercial banks, credit unions and building societies. They are used for day-to-day banking needs.

Question 6

What is a deposit/savings account

Answer 6

Deposit/savings accounts are offered by the commercial banks, building societies,
An Post and the credit unions. They are used to save money.

Question 7

What are current account used for

Answer 7

> Receive your income
Store money safely
Pay for goods and services
Pay bills and transfer money to other people.

Question 8

What is lodgements

Answer 8

Amounts paid into account are know as lodgements

Question 9

What u need to open current or deposit accounts

Answer 9

Photographic proof of identity
Proof of address
Personal Public Service Number (PPSN)

Question 10

How wages paid

Answer 10

Paypath-> to electronic payment or paying wages electronically

Question 11

What is standing order

Answer 11

Fixed amount~fixed date example loan repayment

Question 12

What is direct debit

Answer 12

Variable amount examples electricity bills +heating bills

Question 13

What is a debit card used for

Answer 13

Used to (1) withdraw cash (2) contactless payments/tap and go

Question 14

1 advantage plus disadvantages of contactless payments

Answer 14

It is safer as it eliminates the need to carry cash.
It is quicker and more convenient than going to an ATM or using cash.

> If the card is stolen there is a risk that it can be used without the PIN.
It can only be used for purchases up to €30.

Question 15

What is a digital wallet

Answer 15

A digital wallet is an online service that allows you to make electronic transactions.
This can include using your computer to buy items online or using your smartphone to buy something in a shop. Eg google pay

Question 16

Direct debit is

Answer 16

A current account holder gives permission to another person or business to withdraw ) variable amounts from their account.

Question 17

Credit transfer is

Answer 17

A credit transfer is a once-off instruction from a current account holder to their bank to transfer an amount of money to another account.

Question 18

What’s a cheque

Answer 18

A cheque is a written instruction from an account holder to their bank to pay a specific amount of money to a named person or business.

Question 19

Credit cards

Answer 19

•Buying on credit means ‘buy now, pay later and credit cards, e.g. Visa and Mastercard, has a spending limit

Question 20

Types of loans

Answer 20

> Short-term loans - repaid within one year (e.g. bank overdraft)
Medium-term loans - repaid between one and five years
Long-term loans - repaid over longer than five years (e.g. a mortgage).