Keywords Flashcards
Interest Rate
The cost of borrowing money or the reward for saving money.
Money Owed
Debt
Credit Rating
A score given to individuals on how likely they are to repay debts based upon their previous actions.
Bankrupt
When an individual or organization legally states its inability to repay debts.
Solvent
The ability to meet day-to-day expenditure and repay debts.
An account with a bank or building society designed for frequent use.
Current account
The ability to withdraw money that you do not have from a current account.
Overdraft
Expenditure
The amount of money you need to cover all your expenses/outgoings.
Shareholder
Someone who has invested in a company in return for equity.
Placing money in a secure place so that it grows in value and can be used in the future.
Saving
Investment
Speculative commitment to a business venture in the hope that it generates a financial reward in the future.
Insurance
An agreement with a third party to provide compensation against financial loss in line with the conditions laid down in the policy agreement.
Regular payments made by an individual or company to an insurance provider in return for protection.
Premiums
Cash
Notes and coins in a wide range of denominations.
Debit Card
Issued by banks with payments for goods and services being deducted directly from a current account
Credit Card
Issued by financial institutions allowing customers to delay payments for goods and services.
Cheque
A written order to a bank to make a payment for a specific amount of money from one person’s account to another account.
Electronic Transfer
Payment is transferred directly from one bank account to another.
Direct debit
An agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods or services received.
Liquidity
The ease with which an asset can be converted into cash.
Insolvency
A business that cannot meet its financial commitments.
Credit Period
The amount of time between purchasing a product on credit and when the credit needs to be paid back.
Net Cash Flow
The inflows of a business minus the outflows of the business. The profit for that month.
Closing balance
The amount of money a business has at the end of the month.
