Key words topic 3 Flashcards
Automatic credit transfer
When state benefits get transferred directly into your account
Automation
When a computer takes over a task that a person used to do
Competition and Markets Authority
(CMA)
The body responsible for making sure there is competitive markets and reducing anti-competitive activities
Consumer culture
Where the buying and selling of goods and services is the most important social and economic activity.
Consumer demand
The amount consumers are spending on goods and services
Consumer Protection from Unfair Trading Regulations 2008
-Businesses don’t mislead consumers
-Prevents aggressive sales techniques making people buy things
Corporate demand
The amount businesses are spending on the goods and services they are consuming, funded by their revenue, savings, borrowings and capital injections from investors.
Demographics
Statistical data relating to population eg in terms of age, sex, ethnicity, culture, social status and geography.
Devaluation
A deliberate reduction in the value of a currency in relation to other currencies, carried out as part of a government’s economic policy.
Digital divide
Economic inequality caused by a lack of access to, use of, or knowledge of internet technology.
Equity loan
A loan secured on a mortgage property
EU Directive
A legislative act of the EU, which requires member states to reach a result without dictating the means of that result.
Exports
Goods and services made in one country and sold to another
Financial Conduct Authority (FCA)
The organisation that regulates financial firms providing services to consumers, and maintains the integrity of the UK’s financial markets.
Financial literacy
An individual’s level of knowledge and understanding of financial matters.
Financial Ombudsman Service
(FOS)
An independent body set up by Parliament that settles customer complaints about providers at no charge to consumers.
Financial Policy Committee (FPC)
A part of the Bank of England that monitors and responds to risk posed to the entire financial services market. Its focus on the whole market makes it a macro-prudential authority.
Financial Services Act 2012
A key Act of Parliament governing the regulation of the financial services industry.
Financial Services Compensation Scheme (FSCS)
A compensation scheme that pays compensation to account holders of up to a certain amount per provider if the provider goes into default (so cannot pay account holders the money in their accounts).
Fiscal policy
How the government manages the amount of money it raises in taxation, the amount it borrows on the financial markets, and the
overall amount it spends.
Floating exchange
rate
Where the value of a currency is determined by the supply of and demand for that currency.
General Data Protection Regulation
European Union legislation implemented on 25 May 2018. In the UK, its provisions supersede those of the Data Protection Act 1998 with the creation of the Data Protection Act 2018.
Green technology
Processes and products that are renewable, sustainable or non-polluting, such as energy from tidal power.
Monetary policy
The manipulation of interest rates to maintain low inflation.
Monetary Policy Committee (MPC)
The Bank of England committee responsible for keeping inflation under control by the manipulation of interest rates.
Negative equity
The situation where a mortgage loan is bigger than the value of the property.
Payment protection insurance (PPI)
An insurance product intended to ensure repayment of loans should a borrower face unexpected events that prevent them from repaying the debt.
Prudential Regulation Authority (PRA)
One of the two main regulators of financial services in the UK
Sub-prime market
Lending to and borrowing by consumers with untested or poor credit histories.
