Personal and Business Finance

Question 1

What is Unit of account

Answer 1

Unit of accounts is one of the functions of money which allows people togive an economic value to products and services

Question 2

What is means of exchange

Answer 2

Means of exchange is another function of money which allows people to trade

Question 3

What is store Value

Answer 3

Store value is a function of money which allows people to use it in the future as it is keep it value

Question 4

What is legal tender

Answer 4

Legal tender is a function of money which is seen as a recognised form of payment

Question 5

How is the role of money influenced through personal attitudes

Answer 5

Personal attitudes toward consumerism and materialism influence spending habits.

Question 6

How is the role of money influenced through culture

Answer 6

Financial views can be influenced by certain cultures that place a higher value on shared wealthand the well-being of others than on individual wealth.

Question 7

How is the role of money influenced through life events

Answer 7

Getting married, studying, travelling or starting a family are examples of how the role of money is influenced through life events.

Question 8

How is the role of money influenced through external influences

Answer 8

The overall economic environment, including factors such as inflation, interest rates, and unemployment rates, affects individuals’ purchasing power and the value of money is one way the role of money influenced through external influences

Question 9

In the life stage what is the financial needs in childhood

Answer 9

Limited needs

Mainly reliant on parents

May want to by sweets or toys

Question 10

In the life stage what is the financial needs of an adolescence

Answer 10

Want to be more independent

Slightly less reliant on parents

Question 11

In the life stage what is the financial needs of a young adult

Answer 11

University or starting a career

Looking to be more independent

Buying a car or house

Looking to settle down

Question 12

financial needs of a middle aged person

Answer 12

Support family

Start saving for children’s needs.

Improve own lifestyle

Question 13

financial needs of an old person

Answer 13

Fewer dependents

Fewer financial needs

Question 14

Define the word Debt

Answer 14

Money owed

Question 15

What is credit rating

Answer 15

A rating based on a person’s past behaviour that predicts how likely they are to repay debt.

Question 16

Define the word bankrupt

Answer 16

When a person or organisation is unable to repay debt

Question 17

Give a definition for the word solvent

Answer 17

The ability to meet day to day expenses and repay debts.

Question 18

What is current account

Answer 18

An account with a bank or building society designed for frequent use

Question 19

What is an overdraft

Answer 19

The ability to withdraw money that you do not have from a current account

Question 20

What is a standard account

Answer 20

is a type of bank account that allows you to deposit and withdraw money easily

Question 21

What are the features of a standard account

Answer 21

• Deposits and withdrawals
• Check writing
• Online banking
• Debit card usage

Question 22

what is packaged premium account

Answer 22

It typically comes with additional features, benefits, and services beyond what a basic account provides.