KEY WORDS TOPIC JUAN

Question 1

Credit union

Answer 1

A mutual organisation (that is, owned by its members) that provides a range of financial products to members

Question 2

Insolvency

Answer 2

A situation in which a person cannot repay what they owe because their debts are greater than their assets.

Question 3

Money-purchase
pension scheme

Answer 3

A pension scheme in which the value of the fund available at retirement is based on the contributions made by an employee (and
their employer, in workplace schemes), which are invested. Also known as defined-contribution schemes.

Question 4

Mortgage payment
protection insurance

Answer 4

An insurance policy intended to cover mortgage payments in the
event of illness or unemployment.

Question 5

Non-financial
investments

Answer 5

Investments in items such as fine wines, art and antiques, rather than financial products.

Question 6

Recession

Answer 6

A period of at least six months in which the amount of goods and
services the country is producing is shrinking.

Question 7

Sustainable personal
finance

Answer 7

Achieving and maintaining a balance between personal income and expenditure to satisfy needs, wants and aspirations within a budget.