Personal and Business Finance Flashcards
What is Unit of account
Unit of accounts is one of the functions of money which allows people togive an economic value to products and services
What is means of exchange
Means of exchange is another function of money which allows people to trade
What is store Value
Store value is a function of money which allows people to use it in the future as it is keep it value
What is legal tender
Legal tender is a function of money which is seen as a recognised form of payment
How is the role of money influenced through personal attitudes
Personal attitudes toward consumerism and materialism influence spending habits.
How is the role of money influenced through culture
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.
How is the role of money influenced through life events
Getting married, studying, travelling or starting a family are examples of how the role of money is influenced through life events.
How is the role of money influenced through external influences
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
In the life stage what is the financial needs in childhood
Limited needs
Mainly reliant on parents
May want to by sweets or toys
In the life stage what is the financial needs of an adolescence
Want to be more independent
Slightly less reliant on parents
In the life stage what is the financial needs of a young adult
University or starting a career
Looking to be more independent
Buying a car or house
Looking to settle down
financial needs of a middle aged person
Support family
Start saving for children’s needs.
Improve own lifestyle
financial needs of an old person
Fewer dependents
Fewer financial needs
Define the word Debt
Money owed
What is credit rating
A rating based on a person’s past behaviour that predicts how likely they are to repay debt.
Define the word bankrupt
When a person or organisation is unable to repay debt
Give a definition for the word solvent
The ability to meet day to day expenses and repay debts.
What is current account
An account with a bank or building society designed for frequent use
What is an overdraft
The ability to withdraw money that you do not have from a current account
What is a standard account
is a type of bank account that allows you to deposit and withdraw money easily
What are the features of a standard account
- Deposits and withdrawals
- Check writing
- Online banking
- Debit card usage
what is packaged premium account
It typically comes with additional features, benefits, and services beyond what a basic account provides.
