Money And Banking

Question 1

Barter

Answer 1

A system of exchanging one product for another (before money)

Question 2

Why do we invest money

Answer 2

To earn interest

For safety reasons

Question 3

What people consider before investing

Answer 3

Safety
Interest
Will it be easy to withdraw saving?

Question 4

Deposit account

Answer 4

Money is safe and can be withdrawn on demand

Question 5

Simple interest

Answer 5

Interest calculated on a fixed principle over a period of time

Question 6

CAR

Answer 6

Compound annual rate

Question 7

Standing order

Answer 7

An instruction by an ac holder given to bank to make regular fixed payments to person/organisation.

Eg rent

Question 8

Direct debit

Answer 8

Permission granted by ac holder to allow creditor to take fixed variable out of the account at any time

Question 9

Drawer

Answer 9

Person who writes the cheque

Question 10

Payee

Answer 10

Person the cheque is being payed to

Question 11

Eg. of credit cards

Answer 11

Visa and MasterCard

Question 12

Eg. of consumer buying hire purchase

Answer 12

Immediate possession and use

Security is not required

Question 13

Disadvantages of consumer buying on hire purchase

Answer 13

Expensive