Unit 3 - B1 - Ms Powell Flashcards
1
Q
What are the different types of organisations?
A
- Bank of England
- Banks
- Building Societies
- Credit Unions
- National Savings & Investments
- Insurance Companies
- Pension Companies
- Pawn Brokers
- Payday Loans
2
Q
What is the Bank of England and Features of it?
A
- UK’s central bank- regulates and supervises banks, building societies, insurance companies, investment companies and credit unions.
- Responsible for maintaining the UK’s monetary and financial stability.
- Sets interest rates- if they increase the cost of borrowing will rise
- Issues legal tender
- Independent from the government.
3
Q
What are the Features of Banks?
A
-Owned by their shareholders
-Offer customers a range of -Financial service
are reliable secure and private
-May charge for a certain account and service
-In the event of a bank failing, saving deposits are only secure up to a certain limit £85,000
4
Q
What are the Features of Building Societies?
A
- Owned by their members (account holders)
- Provide financial services
- Can offer better interest rates and savings than banks
- Fewer branches leading to poor access.
5
Q
What are the Features of Credit Unions?
A
- Financial cooperatives and run by their members
- Not for profit
- Offer members savings accounts, current accounts and loans
- More limited funds and opportunities than commercial banks
- Good cooperative and group feeling
6
Q
What are the Features of National Savings and Investments?
A
- Sells savings and investment products e.g. premium bonds
- Money invested in products used to finance government activities
- Poor interest rate, no interest payments on premium bonds
- Some of its services can be accessed from high street post offices
7
Q
What are the Features of Insurance Companies?
A
- Offer policies which compensate policyholders against personal injury, loss or damage to property and other risks including third party liability
- Also offer life insurance and pension plans that provide financial security for policyholders depending on the performance of investment funds.
8
Q
What are the Features of Pension Companies?
A
- Businesses that sell policies to customers allowing them to save into personal pensions schemes
- Funds locked into savings they charge for early withdrawal
- Projected income is based on figures that may change overtime.
9
Q
What are the Features of Pawnbrokers?
A
- Individuals or businesses that loan money against the value of a persons assets
- Interest is charged on loans for the period during which the money is borrowed
- Items not bought back within a certain time may be sold to recover the debt
- Instant cash available if the asset has value
- Short term loan high costs
10
Q
What are the Features of Pay Day Loans?
A
- Businesses that offer short term loans to people
- Immediate cash available even if there is a poor credit score
- Very expensive and easy to get into deeper debt..
11
Q
What are Services Provided by Banks?
A
- Overdrafts
- Mortgages
- Loans
- Standing Orders
- Cash Withdrawals
- Secure Storage
- Advice
- Direct Debits
- Cheques
- BACS
