Learning Aim B: Personal and Business Finance

Question 1

The central bank for the UK. Its role is to monitor the banking system and to be a banker to the banks. It is responsible for setting interest rates in the UK.

Answer 1

Bank of England

Question 2

A financial institution that offers personal loans, mortgages, and other services. They store money on behalf of customers.

Answer 2

Bank

Question 3

Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.

Answer 3

Credit Unions

Question 4

This is a government-backed organisation that offers a secure saving option. It offers a range of options including ISAs, premium bonds and gilts and bonds.
Insurance companies Businesses that protect their clients against financial losses from certain specified risks (death, accident, and theft, for example).

Answer 4

National Savings and Investments

Question 5

These are businesses that sell policies to individuals, either privately or through employers, to allow them to save now to fund retirement in the future.

Answer 5

Pension Companies

Question 6

Businesses or individuals who loan money against the security of a personal asset

Answer 6

Pawn Brokers

Question 7

A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck.

Answer 7

Payday Loans

Question 8

Going into the branch to make a financial transaction

Answer 8

Branch Banking

Question 9

The use of telephone to carry out banking transactions which may use either an automated service or require a customer advisor

Answer 9

Telephone Banking

Question 10

A type of banking whereby transactions are made via a smartphone or tablet app. The account holder can transfer money between accounts, pay bills, deposit checks, and monitor account activity.

Answer 10

Mobile Banking

Question 11

The use of the postal service to carry out paper-based financial transactions

Answer 11

Postal Banking

Question 12

This is an independent organisation that is the conduct regulator for 59,000 financial services firms and financial markets in the UK. It is funded via fees charged to the financial service providers and their work focuses on 3 key areas:
Authorisation, Supervision & Enforcement

Answer 12

FCA

Question 13

Appointed by the government to protect and represent consumers who are in disputes with financial service providers. They only get involved if these disputes cannot be settled between the financial provider and the consumer. Funded by compulsory fees charged to all regulated financial institutions.

Answer 13

FOS

Question 14

An organisation that pays compensation to consumers when the financial service provider is unable to. Protects savers up to £85,000 if the institution goes bust and the saver will be compensated by the FSCS.

Answer 14

FSCS

Question 15

Laws that have been passed to regulate any business offering credit to consumers. These laws are passed by the UK government to ensure consumers are protected and that financial providers do not take advantage.

Answer 15

Consumer Credit Legislation

Question 16

A charity run organisation that provides advice on a range of financial and non financial issues. This can be done via a face to face appointment, over the phone or online. Financial advice covers areas including, debt, benefits, banking, pensions and insurance.

Answer 16

Citizens Advice

Question 17

Professional individuals who provide independent advice and guidance on a range of financial products such as; mortgages, pensions, insurance and investing. They must be qualified and are regulated by the UK government.

Answer 17

Independent Financial Advisor

Question 18

Professional individuals who provide independent advice and guidance on Price comparison sites do exactly what their name implies as they compare the price of goods and services from a range of companies. This allows you to make sure you get a deal that’s tailored to you at the best price.

Answer 18

Price Comparison Websites

Question 19

This is a professional service that offers independent advice. It is a common process that is used to help individuals with debt settlement through education, budgeting and the use of a variety of tools with the goal to reduce and ultimately eliminate debt.

Answer 19

Debt Councillors

Question 20

This is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors.

Answer 20

IVA

Question 21

This is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions bankruptcy is imposed by a court order.

Answer 21

Bankruptcy