Key words topic 3

Question 1

Automatic credit transfer

Answer 1

When state benefits get transferred directly into your account

Question 2

Automation

Answer 2

When a computer takes over a task that a person used to do

Question 3

Competition and Markets Authority
(CMA)

Answer 3

The body responsible for making sure there is competitive markets and reducing anti-competitive activities

Question 4

Consumer culture

Answer 4

Where the buying and selling of goods and services is the most important social and economic activity.

Question 5

Consumer demand

Answer 5

The amount consumers are spending on goods and services

Question 6

Consumer Protection from Unfair Trading Regulations 2008

Answer 6

-Businesses don’t mislead consumers

-Prevents aggressive sales techniques making people buy things

Question 7

Corporate demand

Answer 7

The amount businesses are spending on the goods and services they are consuming, funded by their revenue, savings, borrowings and capital injections from investors.

Question 8

Demographics

Answer 8

Statistical data relating to population eg in terms of age, sex, ethnicity, culture, social status and geography.

Question 9

Devaluation

Answer 9

A deliberate reduction in the value of a currency in relation to other currencies, carried out as part of a government’s economic policy.

Question 10

Digital divide

Answer 10

Economic inequality caused by a lack of access to, use of, or knowledge of internet technology.

Question 11

Equity loan

Answer 11

A loan secured on a mortgage property

Question 12

EU Directive

Answer 12

A legislative act of the EU, which requires member states to reach a result without dictating the means of that result.

Question 13

Exports

Answer 13

Goods and services made in one country and sold to another

Question 14

Financial Conduct Authority (FCA)

Answer 14

The organisation that regulates financial firms providing services to consumers, and maintains the integrity of the UK’s financial markets.

Question 15

Financial literacy

Answer 15

An individual’s level of knowledge and understanding of financial matters.

Question 16

Financial Ombudsman Service
(FOS)

Answer 16

An independent body set up by Parliament that settles customer complaints about providers at no charge to consumers.

Question 17

Financial Policy Committee (FPC)

Answer 17

A part of the Bank of England that monitors and responds to risk posed to the entire financial services market. Its focus on the whole market makes it a macro-prudential authority.

Question 18

Financial Services Act 2012

Answer 18

A key Act of Parliament governing the regulation of the financial services industry.

Question 19

Financial Services Compensation Scheme (FSCS)

Answer 19

A compensation scheme that pays compensation to account holders of up to a certain amount per provider if the provider goes into default (so cannot pay account holders the money in their accounts).

Question 20

Fiscal policy

Answer 20

How the government manages the amount of money it raises in taxation, the amount it borrows on the financial markets, and the
overall amount it spends.

Question 21

Floating exchange
rate

Answer 21

Where the value of a currency is determined by the supply of and demand for that currency.

Question 22

General Data Protection Regulation

Answer 22

European Union legislation implemented on 25 May 2018. In the UK, its provisions supersede those of the Data Protection Act 1998 with the creation of the Data Protection Act 2018.

Question 23

Green technology

Answer 23

Processes and products that are renewable, sustainable or non-polluting, such as energy from tidal power.

Question 24

Monetary policy

Answer 24

The manipulation of interest rates to maintain low inflation.

Question 25

Monetary Policy Committee (MPC)

Answer 25

The Bank of England committee responsible for keeping inflation under control by the manipulation of interest rates.

Question 26

Negative equity

Answer 26

The situation where a mortgage loan is bigger than the value of the property.

Question 27

Payment protection insurance (PPI)

Answer 27

An insurance product intended to ensure repayment of loans should a borrower face unexpected events that prevent them from repaying the debt.

Question 28

Prudential Regulation Authority (PRA)

Answer 28

One of the two main regulators of financial services in the UK

Question 29

Sub-prime market

Answer 29

Lending to and borrowing by consumers with untested or poor credit histories.