Topic A

Question 1

Unit of Account

Answer 1

Values goods and services

Question 2

Means of exchange

Answer 2

Used to complete transactions e.g money

Question 3

Legal tender

Answer 3

Used to settle/clear a debt in court

Question 4

2 reasons to plan expenditure

Answer 4

to avoid getting into debt and to control costs

Question 5

Factors that affect the role of money

Answer 5

life stages, culture, life events

Question 6

Standard Account

Answer 6

Regular account, allows individuals to make payments and receive money

Question 7

Packaged, premium account

Answer 7

Similar to standard account, but charges monthly fees for benefits such as travel insurance and cash back on household bills

Question 8

Basic Account

Answer 8

Aimed at customers with a low credit rating and offers heavily basic facilities

Question 9

Student Account

Answer 9

Aimed at students, offers interest-free overdraft and benefits such as free travel

Question 10

Overdraft

Answer 10

A short term loan you can use when short of cash

Question 11

Personal Loan

Answer 11

Can be used to fund expensive items such as a car

Question 12

Hire Purchase

Answer 12

Typically used to buy a car, deposit put down and then monthly payments

Question 13

Mortgage

Answer 13

Used to buy a house, payed back in instalments

Question 14

Credit Card

Answer 14

A card which you can make purchases on, then pay back

Question 15

Payday loan

Answer 15

Short loan, typically for individuals who need to pay bills