Lesson 5

Question 1

What is a current account

Answer 1

This is a type of account offered by banks and building societies for frequent use

Question 2

What are the 4 types of current account

Answer 2

Standard, Basic, Premium, Student

Question 3

What are common features of a current account

Answer 3

Can set up direct debits and standing orders
Can make cash withdraws
May offer overdraft facilities

Question 4

What are the advantages of a standard account

Answer 4

Widely acceptable.
Available overdraft facilities

Question 5

What are the disadvantages of a standard account

Answer 5

Limited available facilities
Charges on overdraft
Banked cheques

Question 6

What are advantages of a premium account

Answer 6

Range of services
Additional benefits

Question 7

What are the disadvantages of a premium account

Answer 7

Charges on additional fees.
It is generic rather than being tailored to the user.

Question 8

What are the advantages of a basic account

Answer 8

An account created for those who may struggle to get accepted by a bank

Question 9

What are the disadvantages of a basic account

Answer 9

Limited services.
May attach a stigma to the user

Question 10

What are the advantages of a student account

Answer 10

Course fees and student loans can be easily handled

Bonuses are often offered

Question 11

What are the disadvantages of a student account

Answer 11

Overdraft facilities could encourage overspending.
Overall limited facilities.

Question 12

Why don’t basic accounts offer many facilities

Answer 12

Due to customers being seen as high risk

Question 13

What is a student account designed for

Answer 13

To meet the acute needs of students