Summer Exam Revision

Question 1

What is a resource?

Answer 1

A resource is anything that we can use in order to meet our needs or achieve our goals.

Question 2

What is physical/capital resource?

Answer 2

Physical/capital resources - Goods that are made by people and which can be used to provide other goods and services. Examples: Buildings & Property, Computers, Family Car, Smartphone.

Question 3

What are Natural resources?

Answer 3

Natural Resources - Provided by nature; example: land, water.

Question 4

What is Financial Resources ?

Answer 4

Financial Resources - includes all types and sources of money which allow people to buy goods and services. Examples: income from employment, Income from benefits, savings, borrowed money.

Question 5

What are Human Resources ?

Answer 5

Human Resources - this refers to your skills, abilities and experience. It also includes all the other people who are available to help you. Examples: An ability to read and write, an ability to solve problems, skills in music, sport, technology etc., family and friends, teachers and coaches, community leaders.

Question 6

What is time resources?

Answer 6

Time Resources - Time is a valuable and limited resource, so important to use it wisely. You cannot earn, borrow or buy more time.

Question 7

What is Financial Cost

Answer 7

Financial Cost - this is a money cost and is the price of the goods we have chosen to buy. Eg.
Phone credit has a financial cost of €10.

Question 8

What is Opportunity Cost ?

Answer 8

Opportunity Cost - this is the item we must go without when we have to make a choice. Eg. It is the item you do not buy with your €10.

Question 9

What deos term money smart mean? Give 3 examples.

Answer 9

Being money smart is being smart with money And what you do with it .
Examples:

Being able to live within your means.
Being able to save regularly.
Understanding the consequences of overspending and borrowing.

Question 10

What are wages and salaries?

Answer 10

Wages and Salaries Income received as a reward for work.

Question 11

What’s a pension?

Answer 11

Pensions Income paid to people who have retired.

Question 12

What’s Jobseeker’s Benefit ?

Answer 12

Jobseeker’s Benefit A payment to those who are unable to find employment.

Question 13

What’s Working Family Payment (WFP) ?

Answer 13

Working Family Payment (WFP) A payment available to employees with children. It gives extra financial support to people on low pay.

Question 14

Dividends on Shares

Answer 14

Dividends on Shares A dividend is the portion of company profits paid to shareholders.

Question 15

What is windfall income ?

Answer 15

Windfall income This is income that you don’t expect, such as a win on the National Lottery or gifts and inheritances.

Question 16

What’s a regular income ?

Answer 16

Regular Income Some sources of income are received on a regular or ongoing basis, such as weekly or monthly. Example: Wages, Salaries, Child Benefit, Pension, Jobseeker’s Benefit

Question 17

What’s irregular income ?

Answer 17

Irregular Income Other types of income are less predictable and may be received only irregularly.
Example: Overtime, Bonus, Windfall

Question 18

What deos BIK mean?

Answer 18

BENEFIT IN KIND (BIK)
Non-money income in the form of benefits in kind (BIK), also known as ‘perks’, may be received when the household is provided with goods or services that have a money value, e.g. a company
car.

Question 19

What deos Time rate mean ?

Answer 19

Time Rate Wages calculated based on the number of hours worked.

Question 20

What is piece rate ?

Answer 20

Piece Rate Calculation based on the number of items completed.

Question 21

What is Commission?

Answer 21

Commission Some workers, receive a payment based on the value of the goods or services they have sold.

Question 22

What is basic pay?

Answer 22

Basic Pay is the amount earned before any extra payments (overtime and bonuses) are added.

Question 23

What’s Net Pay, ?

Answer 23

Net Pay, also called ‘take-home pay’, is the amount left after all deductions from gross pay.

Question 24

What’s Statutory deductions ?

Answer 24

Statutory deductions are compulsory. Every worker is required by law to pay.

Question 25

What’s Voluntary deductions ?

Answer 25

Voluntary deductions are not compulsory, but workers may choose to pay them.

Question 26

What are STATUTORY DEDUCTIONS?

Answer 26

Pay As You Earn (PAYE) income tax system. Tax is paid on income as it is earned. Pay Related Social Insurance (PRSI), allows employees to claim certain benefits in the future, if needed, e.g. a state pension. Universal Social Charge (USC), applies to all workers whose income is above a certain limit and is used to fund government spending.

Question 27

What’s Discretionary Income ?

Answer 27

Discretionary Income The income left over after taxes and essential spending on items such as the food and bills is called discretionary income, and you can choose how to spend it. The income left over after taxes and essential spending on items such as the food and bills is called discretionary income, and you can choose how to spend it.

Question 28

What’s Analysed Cash Book ?

Answer 28

Analysed Cash Book Used to keep records of actual income received.

Question 29

What are Income Plans ?

Answer 29

Income Plans Used to estimate future income for planning purposes.

Question 30

What’s riced expenditure ?

Answer 30

Fixed Expenditure involves the same amount of money being spent on a regular basis and is not dependent upon usage. e.g. car tax

Question 31

What is irregular expenditure ?

Answer 31

Irregular Expenditure takes place on a less regular basis and the amounts involved also tend to vary with usage. e.g. groceries

Question 32

What’s Discretionary Expenditure: ?

Answer 32

Discretionary Expenditure: Non-essential items which we choose to buy. Luxury items. e.g. holiday

Question 33

What is a current expenditure ?

Answer 33

Current Expenditure spending on day-to-day items.

Question 34

What is Capital Expenditure ?

Answer 34

Capital Expenditure is long term or once-off spending.

Question 35

What’s a digital wallet?

Answer 35

Digital Wallet A digital wallet is an online service that allows you to make electronic transactions e.g. Apple Pay and Google Pay.

Question 36

What’s a standing order ?

Answer 36

Standing Order: The account holder instructs the bank to automatically pay a fixed sum of money from a current account on a specified date. It involves a recurring payment and is used to pay bills which are regular and fixed, e.g. rent.

Question 37

What is paypath ?

Answer 37

Paypath: The employer pays wages directly into the bank account of employees.

Question 38

What’s a bank draft ?

Answer 38

Bank draft this is like a cheque but it is written on a bank's own account rather than a customers account. The customer must have sufficient funds in their bank account that the bank can make an immediate transfer into its own account and write a draft made payable to whomever the customer specifies. Since the money has already been paid to the bank the person receiving the draft can be certain that they will receive payment when they present their draft at the bank. Often used when buying cars.

Question 39

Adavantages and disadvantages of INTERNET & TELEPHONE BANKING

Answer 39

Advantages Convenience - access anytime Disadvantages Security risks of online banking

Question 40

What is phishing.?

Answer 40

Criminals use fake emails and fake websites in order to trick people into giving away passwords and bank details. This is known as phishing.

Question 41

What are FACTORS TO CONSIDER BEFORE DECIDING WHERE TO SAVE YOUR MONEY ?

Answer 41

Risk: will my savings be safe and secure? Money saved in financial institutions is far safer than money kept in a drawer or even a safe at home. Liquidity: is it easy to withdraw or access my savings? Some savings accounts require you to give the financial institution written notice and penalties may apply if you withdraw earlier than the terms agreed.

Question 42

What are FACTORS TO CONSIDER BEFORE DECIDING WHERE TO SAVE YOUR MONEY ?

Answer 42

Risk: will my savings be safe and secure? Money saved in financial institutions is far safer than money kept in a drawer or even a safe at home. Liquidity: is it easy to withdraw or access my savings? Some savings accounts require you to give the financial institution written notice and penalties may apply if you withdraw earlier than the terms agreed.

Question 43

Name and explain different types of deposite accounts ?

Answer 43

Demand Deposits: Money can be withdrawn at any time without penalty. No notice of withdrawal required. Typically pay a very low rate of interest. Term Deposits: The saver is required to leave their money in the account for a certain length of time. The agreed timeframe (or term) could be anything from seven days to five years. Term deposits will carry a higher rate of interest than demand deposit accounts. It may be possible to withdraw money early, but there will be a penalty for doing so - a lower rate of interest will be applied. Notice Deposits: The saver must give the bank advance notice of their intention to withdraw money, e.g. fourteen-day notice deposit account means the saver must notify the bank fourteen days in advance of withdrawal.

Question 44

What s a money lender?

Answer 44

Moneylenders are individuals or companies (excluding banks, building societies and credit unions) whose main business is to lend money. In general, moneylenders charge very high rates of interest and should be avoided.

Question 45

What is hire purchase ?

Answer 45

Hire Purchase: The purchaser pays an initial deposit followed by an agreed number of fixed regular instalments. Ownership of the asset will only pass to the hirer on the last instalment. There is no security required but the rate will be very high.

Question 46

What’s leasing?

Answer 46

Leasing: Leasing involves the renting of an asset (e.g. vehicles). The lease agreement allows a household or individual to have immediate possession and use of the asset provided they make fixed, regular payments to the leasing company. The household/individual will never own the asset, which always remains the property of the leasing company.

Question 47

What’s a mortgage ?

Answer 47

Mortgage: Households and individuals generally use a special long-term loan called a mortgage for buying property. Mortgages are available from commercial banks and building societies. Under the terms of the mortgage agreement the property is used as security or collateral for the loan. This means that the property may be repossessed by the lender if the borrower fails to repay the loan.

Question 48

Things to consider before getting a loan ?

Answer 48

How much money do you need to borrow? How long will it take you to repay it? Where can you get the best rates of interest?

Question 49

What’s Direct Debit:?

Answer 49

Direct Debit: A current account holder gives permission to another person or business to request the withdrawal of variable amounts from a current account. It is also a recurring payment but is used to pay bills where the amount may vary, e.g. telephone, gas and electricity.