Learning aim A key words

Question 1

What is the definition of interest rate?

Answer 1

Cost of borrowing money or the reward for saving money

Question 2

Definition of debt

Answer 2

Money owned

Question 3

Definition of credit rating

Answer 3

Score given to individuals how likely they are to repay debts based on previous actions

Question 4

Definition of bankrupt

Answer 4

Individual or organisation legally state inability to pay debt

Question 5

Definition of solvent

Answer 5

Meet day to day expenditure and repay debt

Question 6

Definition of current account

Answer 6

An account with a bank for frequent use

Question 7

Definition of overdraft

Answer 7

Ability to withdraw money that you do not have from current account

Question 8

Definition of expenditure

Answer 8

Money you need to cover all expenses

Question 9

Definition of shareholder

Answer 9

Invested in a company

Question 10

Definition of savings

Answer 10

Placing money in a secure place so value grows to be used in the future

Question 11

Definition of investments

Answer 11

Commitment to business venture financial reward in the future

Question 12

Definition of insurance

Answer 12

Agreement to provide compensation against loans

Question 13

Definition of premiums

Answer 13

Regular payments made by an individual or company to an insurance provider to return of protection