unit 3 personal and business finance

Question 1

what are the four functions of money

Answer 1

unit of account
means of exchange
store of value
legal tender

Question 2

what is an overdraft

Answer 2

an amount of money that you can borrow from the bank if your account does not have enough money in it. this will be payed back when money gets put into the account.

Question 3

what are personal loans

Answer 3

an amount of money that you borrow from the bank which you pay back monthly.

Question 4

what are payday loans

Answer 4

a loan which is given to you before you are paid. you pay this off after you are paid

Question 5

what is an individual savings account

Answer 5

a savings account which you do not have to pay tax on.

Question 6

what are shares

Answer 6

percentages of a business that are available for people to buy and own

Question 7

what is a pension

Answer 7

an amount of money that is set aside for people to be able to access after they retire

Question 8

what are building societies

Answer 8

they provide banking and financial services to the public

Question 9

what are insurance companies

Answer 9

they provide financial protection against any hazards that people may face financially

Question 10

what are pension companies

Answer 10

they provide income to people who are insured with them when they become retired

Question 11

what are pawnbrokers

Answer 11

they let you borrow money in exchange for valuables