unit 3 topic 2

Question 1

debt card

Answer 1

issued by banks for goods and services being deducted from a direct current account

Question 1

cash

Answer 1

notes and coins in a wide range of denomination

Question 2

credit card

Answer 2

issued by financial institutions allowing customers to delay payments for goods and services

Question 3

cheque

Answer 3

written order to a bank - make specific payment for specific amount

Question 4

electronic transfer

Answer 4

payment transferred drifty from one bank to another

Question 5

pre-paid card

Answer 5

money is uploaded onto a card with transactions then being withdrawn to reduce the balance

Question 6

standing order

Answer 6

agreement with bank to transfer fixed sum of money to a third party account - set date - regular basis

Question 7

direct debit

Answer 7

agreement with bank - allow third party to withdraw money from account on set day

Question 8

charge card

Answer 8

issued by financial institutions - allows customers to delay payments of goods and services for short time then paying in full at each statement date

Question 9

store card

Answer 9

issued by retail outlet - allow customers to delay payment for goods and services - store specific

Question 10

mobile banking

Answer 10

carry out financial transactions via phone

Question 11

BACs

Answer 11

bankers automated clearing service - allows payment from one bank account to another in 3 working days

Question 12

CHAPs

Answer 12

clearing house automated payment system - allows payment from one bank account to another

Question 13

current account

Answer 13

account for frequent use

Question 14

standard current account

Answer 14

full day to day banking facilities

Question 15

packaged premium current account

Answer 15

annual fee pr additional charge in return for offering extra incentives

Question 16

basic current account

Answer 16

limited features - typically held by people with no credit history or poor credit rating

Question 17

student current account

Answer 17

designed to assist young people and students to become more prudent with their personal finances