Types of Financial Institution

Question 1

Bank of England

Answer 1

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

Question 2

Banks

Answer 2

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

Question 3

Building Societies

Answer 3

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

Question 4

Credit Unions

Answer 4

Not-For-Profit organisations that handle financial transactions and store money on behalf of their members

Question 5

National Savings and Investments

Answer 5

A government-backed organisation that offers a secure savings option

Question 6

Insurance Companies

Answer 6

Businesses that protect against the risk of loss in return for a premium. They are profit-making organisations

Question 7

Pension Companies

Answer 7

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

Question 8

Pawnbrokers

Answer 8

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

Question 9

Payday Loans

Answer 9

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