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Personal and Business Finance > Personal Finance Key Terms > Flashcards

Personal Finance Key Terms Flashcards

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1
Q

cash

A

notes and coins in a wide range of denominations

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2
Q

debit card

A

issued by banks with payments for goods and services being deducted directly from a current account

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3
Q

credit card

A

issued by financial institutions allowing customers to delay payments for goods and services

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4
Q

cheque

A

a written order to a bank to make a specific payment for a specific amount of money from one person’s account to another account

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5
Q

electronic transfer

A

payment is transferred directly from one bank account to another

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6
Q

direct debit

A

an agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods or services received e.g. electricity bill

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7
Q

standing order

A

an agreement made with a bank to transfer a fixed sum of money to a third-party account on a set date on a regular basis e.g. a fixed loan repayment

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8
Q

pre-paid card

A

money is uploaded onto a card with transactions then withdrawn to reduce the balance

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9
Q

contactless card

A

cards with an embedded chip and antenna that enable customers to wave their card over a reader at the point of sale for an automatic transaction

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10
Q

charge card

A

issued by financial institutions allowing customers to delay payments for goods and services for a short period of time with the balance being paid off in full at each statement date

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11
Q

store card

A

issued by a retail outlet to allow customers to delay payments for goods and services- similar to a credit card but only for the store(s) specified

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12
Q

mobile banking

A

the ability to carry out financial transactions using mobile devices such as phones or tablets

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13
Q

bankers automated clearing service (BACS) faster payment

A

a system that allows the transfer of payments directly from one bank account to another in 3 working days (unless faster payment is available)

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14
Q

clearing house automated payment systems (CHAPS)

A

a system that allows the transfer of payments directly from one bank account to another, usually on the same day

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15
Q

standard current account

A

provides full day-to-day banking facilities e.g. cheque book, debit card, easy access to your money and an authorised overdraft facility

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16
Q

packaged, premium current account

A

has an annual fee or additional charge in return for offering extra incentives. these benefits can vary but may include offers such as discounted home insurance, no fee overdraft, and premium access to popular event tickets

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17
Q

basic current accoutn

A

this account offers limited features and would be typically held by a person with no credit history in the UK or a poor credit history

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18
Q

student current account

A

these are designed to assist young people and students to become prudent with their personal finances. they may come with bonus features, such as interest free overdraft facilities

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19
Q

overdraft

A

allows an individual to withdraw money from a current account that they do not actually have

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20
Q

personal loan

A

allows an individual to borrow a set amount of money which is to be repaid in regular instalments, with interest

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21
Q

hire purchase

A

allows an individual to have use of an item immediately but pay for it in regular instalments. the property is only owned by the individual when the final instalment has been paid

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22
Q

mortgage

A

a long-term loan to fund the purchase of assets e.g. property which will be repaid over a long period of time e.g. 25 years in time and receiving a wage

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23
Q

credit cards

A

allows an individual to pay for goods or services using a card with a statement issued at the end of each month. the balance can be paid in full without incurring interest, or in smaller amounts with an interest charge

24
Q

payday loans

A

a short-term source of finance that can help to bridge the gap between the present moment in time and receiving a wage

25
Q

individual savings account (ISA)

A

a tax-free way to save or invest

26
Q

deposit and savings account

A

an account where interest is paid on the balance

27
Q

premium bonds

A

a government scheme that allows individuals to save, up to a set amount, in bonds. no interest is earned but the bond is placed into a regular draw for cash prizes

28
Q

bonds and gilts

A

these are fixed term securities where the individual lends money to companies and governments in return for interest payments

29
Q

shares

A

investments in business in return for equity. the shareholder becomes a part-owner of the business

30
Q

pensions

A

long-term savings plans where individuals make regular contributions through their working life. this is then repaid upon retirement, either as a lump sum or regular payments

31
Q

car insurance

A

to cover both theft and accidents- there is a legal requirement to insure that any car that is on the road and this protects the driver, passenger and other road users

32
Q

home and contents insurance

A

home- covers the physical building against events like a fire or flood damage; contents- covers the physical items inside the house and when they are used away from home

33
Q

life assurance and insurance

A

life assurance- an ongoing policy to pay a lump sum upon death; life insurance- a policy for a set period of time (e.g. mortgage term) to pay a lump sum if you die within that period

34
Q

travel insurance

A

protects individuals or groups while abroad. cover usually includes illness, loss or theft or property, cancellation and emergencies up to predetermined limits

35
Q

pet insurance

A

protects the owners of pets against some or all of the expenses associated with treating an injured or sick animal e.g. vet fees

36
Q

health insurance

A

covers individuals, families or employees against medical expenses including assessments, treatments and loss of earnings. in the UK, this can pay for private treatment or payment plans for routine visits e.g. to the dentist

37
Q

bank of england

A

the UK’s central bank with responsibility for maintaining a healthy level of financial stability for the UK as a whole

38
Q

banks

A

an organisation that handles financial transactions and stores money on behalf of its customers

39
Q

building societies

A

organisations that handle financial transactions and store money on behalf of their members. members (account holders) are part-owners of the building society and have a right to vote and receive information on the running of the society.

40
Q

credit unions

A

not-for-profit organisations that handle financial transactions and store money on behalf of their members

41
Q

national savings and investment

A

a government-backed organisation that offers a secure savings option

42
Q

insurance companies

A

businesses that protect against the risk of loss in return for a premium. they are profit making organisations

43
Q

pension companies

A

businesses that sell policies to indiviudals, whether privately or through employers, to allow them to save now to fund retirement in the future

44
Q

pawnbrokers

A

businesses or individuals who loan money against the security of a personal asset e.g. an item of jewellery

45
Q

payday loans

A

organisations that offer a short-term source of finance to bridge a gap between now and next receiving a wage

46
Q

branch

A

a physical place where the customer will visit to carry out transactions

47
Q

online banking

A

the use of the internet to carry out banking transactions

48
Q

telephone banking

A

the use of a telephone to carry out banking transactions which may use either an automated service or require a customer advisor

49
Q

mobile banking

A

the use of mobile devices e.g. phones and tablets, to conduct financial transactions

50
Q

citizens advice

A

an organisation, run by charities, that offers advice on a wide range of issues both financial and non-financial

51
Q

independent financial advisor (IFA)

A

professionals who offer independent advice to their clients on financial matters e.g. savings, mortgages, and mortgages and investments

52
Q

price comparison sites

A

websites that collate prices for similar goods and services within an industry, allowing consumers to select the best deals

53
Q

money advice service

A

a government organisation set up to offer free and impartial financial advice in the UK

54
Q

debt counsellors

A

a professional who offers independent advice on how to best manage debt

55
Q

individual voluntary arrangements (IVAs) bankruptcy

A

a government organisation that allows an individual to declare themselves bankrupt while agreeing to pay all or part of the money they owe to creditors

Personal and Business Finance (13 decks)

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