personal finance

Question 1

what is the function of money?

Answer 1

▸▸ Unit of account
• It allows us to place a monetary value on goods and services.
• The price of goods and services show the unit of account, for example a
chocolate bar is 60p or a new car is £30,000.
▸▸ Means of exchange
• It allows us to trade.
• Businesses and customers can buy and sell goods and services using money, for
example when you purchased your lunch yesterday or paid to go to the cinema.
▸▸ Store of value
• It allows us to use it in the future as it keeps its value.
• You might have money saved in a bank account or ‘piggy bank’ which you can
then use to buy goods and services in the future
▸▸ Legal tender:
• It is a legaly recognised form of payment.
• Money is widely recognised and used for all sorts of transactions from buying an ice
cream or getting a haircut to paying a deposit on a house and receiving your wag.

Question 2

what is interest rate?

Answer 2

the cost of
borrowing money or the
reward for saving money.

Question 3

what are the different types of current account?

Answer 3

standard
packaged premium
basic
student

Question 4

what is insurance?

Answer 4

an agreement with a third party to provide compensation against financial lost in line with the condition laid down in the policy agreement..

Question 5

name the different tupes of insurance.

Answer 5

car insurance 
travel insurance
life insurance and assurance
pet insurance 
health insurance 
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