topic 2

Question 1

Aspirations

Answer 1

things or experiences that people would like to have in the future

Question 2

Assets

Answer 2

things that a person or business owns

Question 3

Bank rate

Answer 3

the interest rate that the bank of england uses when it lends money to other banks

Question 4

Demographic changes

Answer 4

changes to the size and structure of the population

Question 5

Economic bloom

Answer 5

a period when the country is producing and selling an increasing amount of goods and services

Question 6

Interest rate

Answer 6

the amount, expressed as a percentage, that a financial services provider charges a borrower when it lends money, or pays to a saver

Question 7

Investments

Answer 7

money paid into financial products; the aim is that the value of the product will grow over time and so the person will eventually receive back more money than they paid in

Question 8

Life assurance

Answer 8

a type of insurance policy that pays out a sum of money if the insured person dies

Question 9

Life cycle

Answer 9

the stages through which people pass between birth and death

Question 10

Life expectancy

Answer 10

the number of years that people are expected, on average, to live, based on the year in which they are born

Question 11

Mortgage

Answer 11

a loan taken out to pay for a property

Question 12

National insurance contributions

Answer 12

money deducted from the pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits

Question 13

needs

Answer 13

things that people need to survive

Question 14

Office for national statistics

Answer 14

the independent organisation that produces statistics on many aspects of life in the UK such as employment, health, housing etc

Question 15

Pension

Answer 15

an income that people receive after retiring from work

Question 16

Recession

Answer 16

a period of at least six months when the amount of goods and services the country is producing is shrinking

Question 17

Redundancy

Answer 17

losing a job because the business no longer needs, wants or can afford that job to be done

Question 18

Risk averse

Answer 18

reluctant to take any kind of risk

Question 19

Risk tolerant

Answer 19

willing to take risks

Question 20

Shares

Answer 20

investments that represent part-ownership of a company

Question 21

wants

Answer 21

things that people would like to have but can survive without

Question 22

will

Answer 22

a legal document setting out what a person wants to happen to their belongings after their death