unit 3 topic 3

Question 1

overdraft

Answer 1

allows individual to withdraw money from a current account they don’t actually have

Question 2

personal loans

Answer 2

allows individual to borrow certain amount of money - is to be paid in regular instalments with interest

Question 3

hire purchase

Answer 3

allows individual to have use of item immediately but they pay in instalments - item only owned when last instalment is paid

Question 4

payday loans

Answer 4

a short term source of finance - helps bridge the gap between the present moment and receiving a wage