Saving

Question 1

What are store cards

Answer 1

They operates in the same way of credit cards except they are only used in the store

Question 2

What are licensed money lenders

Answer 2

They should only be used as a last resort when no other lending institution Will offer a loan money lender must have the license to lend money lenders charge a minimum rate of 23% APR the money lender and the buyer sign the money lending agreement detailing terms of loan

Question 3

What are Credit cards

Answer 3

They are used to chip and pin system the credit card company pays the shop the customer is given a statement of the account by the company because they have 28 days to pay if it is not paid in 28 days the credit card company will charge interest on the balance

Question 4

What is the leasing

Answer 4

It means renting out a good on a constructional basis

Question 5

Why do people lease goods

Answer 5

People lease good because they may only need the good for a period of time or they do not wish to purchase the item them self

Question 6

Name another form of leasing

Answer 6

Another form of leasing is renting

Question 7

What do you all higher purchase contracts contain

Answer 7

Name and address of the buyer. Name address of seller. Cash price of the gods. Full higher purchase price of goods. A pure being charged. The deposit amount. Number of payments. Cost of each payment.

Question 8

What is collateral

Answer 8

It is an item of value that the bank uses as security against the loan. This means that the bank can sell the item if I customer can no longer pay back the loan. Ownership of collateral is given to the bank until the loan is paid off

Question 9

What is a mortage

Answer 9

It is a long term loan used to purchase property. The property is held as collateral by the bank until the full amount of mortage is paid off.

Question 10

What is hire purchase

Answer 10

It is where the buyer hires an item until it is fully paid. The seller gets paid by the finance company or bank. The buyer pays the purchase price to the finance company who also charge the buyer of interest. The finance company own the item until it is paid in full.

Question 11

Name the three parties to hire purchase

Answer 11

The buyer. The seller. The finance company or bank

Question 12

What do you need to think of before you borrow money

Answer 12

Do I really need this item. Do I know the difference between the cash price and the total price. How much the monthly repayments be. Can I afford monthly payments. What happens if I could no longer afford to make the monthly payment

Question 13

What is a bank overdraft

Answer 13

The bank allows the account holder to withdraw more money they have in their account. It is a short term loan it is paid quickly. The overdraft must be first agreed with the bank. The interest rate on the bank overdraft is usually less than the rates charged on the credit.

Question 14

What is a term loan

Answer 14

It alone for a fixed period of time which the customer repays agreed instalments. It is suitable for buying expensive goods and this term should not exceed the lifetime of the good

Question 15

Name the two interests that are available on savings

Answer 15

Simple interest and compound interest

Question 16

Define simple interest

Answer 16

Interest is paid each year on the amount that is saved each year

Question 17

Define compound interest

Answer 17

Interest paid each year on the total sum of money in the account this means you earn interest you have already earned

Question 18

What happens when you buy on credit

Answer 18

If we borrowed to pay for goods we must pay interest on the borrowings the full rate of interest is charged and a loan known as a APR (annual percentage rate). Some leading institutions charger rate of interest on borrowings. This means they are charged on a fixed rate each year on the original sum of money borrowed. This works out as much higher interest rate then if concluding using

Question 19

What is liquidity

Answer 19

The cuisine means how quickly and as it can be converted into cash

Question 20

What is convenience

Answer 20

How easy it is to access your money

Question 21

Name a tax on savings

Answer 21

Dirt (the posit interest retention taxed) Is tax on interest earned from financial institution

Question 22

Name to investment schemes

Answer 22

Shares and dividends

Question 23

Define shares

Answer 23

When you purchasers you are on it to make some profit you are entitled to a percentage

Question 24

That define dividend

Answer 24

It is a percentage of profits that’s a business pays to its shareholders

Question 25

What are saving certificates

Answer 25

They allow you to save A lump sum of money 21% over five years and six months is tax free

Question 26

Define saving bonds

Answer 26

Allows you to save a lump sum of money. Interest 10% over three years and tax free

Question 27

What is A instalment saving agreement

Answer 27

Allows you to save between €25 and 1000 each month for a minimum of 12 months. If money is withdrawn five years penalty applied

Question 28

Name to credit union deposit accounts

Answer 28

A regular share account– receives a percentage of profit earned by their credit union you don’t pay DIRT on these accounts

A regular deposit accounts – operate in the same manner as the bank deposits

Question 29

Define deposit account

Answer 29

Savers receive interest on their savings. Money can only be withdrawn over the counter or an ATM

Question 30

Name to deposit accounts

Answer 30

There are the man deposit accounts and term/Time deposit accounts

Question 31

Define a demand deposit account

Answer 31

Savings can be withdrawn at any time

Question 32

Define the term/time deposit account

Answer 32

Minimum amounts of notice must be given before withdrawing money. It cannot be taken out from ATM.

Question 33

What are building societies

Answer 33

They are institutions their own by their members. They were first established to assist people in buying houses by providing them mortgages. But they now provide other types of loans

Question 34

What is the credit union

Answer 34

They are corrupted that are owned by a group of savouries embarrassed to have something in common (where they live)

Question 35

What is on post

Answer 35

It offers postal services but also offers various financial services that are saving schemes

Question 36

Define foreign currency exchange

Answer 36

It is swapping currency for another banks currency for this service

Question 37

Define exchange rate

Answer 37

The exchange rate is number of units of a foreign given change of one euro