A

Question 1

Unit of account

Answer 1

You exchange money for an equivalent value of goods

Question 2

Means of exchange

Answer 2

Buy, sell, or exchange

Question 3

Store of value

Answer 3

It can be stored

Question 4

Legal tender

Answer 4

National currency of a country an official payment method

Question 5

personal attitudes

Answer 5

towards risk and reward

Question 6

Life stages

Answer 6

your financial priorities and needs

Question 7

Culture

Answer 7

religious belief and ethical principles

Question 8

Life events

Answer 8

e.g. moving houses or made redundant

Question 9

Life events

Answer 9

e.g. moving houses or made redundant

Question 10

External factors

Answer 10

state of economy or availability of jobs

Question 11

Benefits of planning expenditure

Answer 11

1. good credit rating-will be able to borrow money
2. not spending money on unnecessary goods, means that you are able to save money
3. savings can be used fund purchases and unexpected expenses

Question 12

Risks of not planning expenditure

Answer 12

1. can get into debt
2. have insufficient funds
3. poor credit rating-can affect your ability to borrow money
4. legal action taken against you- can lead to repossession
5. not able to save in the future

Question 13

Debt

Answer 13

Something that is owned or due.

Question 14

Costs

Answer 14

An amount to pay to buy or use a good or service.

Question 15

Repossession

Answer 15

To retake possession of something.

Question 16

Insurance

Answer 16

An agreement providing guarantee of compensation for specified loss of damage.

Question 17

Bankruptcy

Answer 17

Not having enough money to repay outstanding debts.

Question 18

Credit rating

Answer 18

Estimate of the ability of a person to fulfil their financial commitments.

Question 19

Solvent

Answer 19

The ability to meet day by day expenditure.

Question 20

Inflation

Answer 20

Price of goods is rising and consequently the purchasing power of the currency is falling.

Question 21

Cash

Answer 21

Used to exchange goods, debt or service.

Question 22

Adv

Answer 22

1. easier to budget your money
2. doesn’t get you into debt

Question 23

Dis

Answer 23

1. cash can be easily lost/ stolen
   2.may have an emergency but not enough cash to cover cost

Question 24

Cheques

Answer 24

An order to a bank to pay a stated sum from the drawer’s account.

Question 25

Adv

Answer 25

1. If cheque lost it doesn't matter as the money won't be lost. 2. Only the named recipient can receive the money.

Question 26

Adv

Answer 26

1. If cheque lost it doesn't matter as the money won't be lost. 2. Only the named recipient can receive the money.

Question 27

Dis

Answer 27

1. It takes 3 working days to transfer money. 2. Not many shops accept them. 3. It can easily be tempered with which leads to fraudulent payment transaction.

Question 28

Debit card

Answer 28

It's a card that has your own money on it

Question 29

Adv

Answer 29

1. don't have to carry cash around 2. If the card is stolen nobody can use it without the pin. 3. keeps your money sate

Question 30

Dis

Answer 30

1. If you forget your pin you will not be able to use the card. 2. Risk of the cardholder overspending

Question 31

Credit card

Answer 31

It's a card that has your money and you can borrow funds.

Question 32

Adv

Answer 32

1. If you don't have enough cash in your bank account you can borrow funds. 2. You pay back at the end of the month (only the interest rate). 3. Most banks offer an interest-free period.

Question 33

Dis

Answer 33

1. If you don't pay the money back at the end of the month than you can get yourself into debt. 2. There is an interest rate. 3. They will charge you money if you make a late payment.

Question 34

Direct debit

Answer 34

An arrangement made with a bank allowing a third party to withdraw money from a person's account on agreed dates, usually used to pay bills.

Question 35

Adv

Answer 35

1. stick to a routine so you can predict and plan 2. budgeting every month is easier 3. you have more control keeps a record in bank statement

Question 36

Dis

Answer 36

1. make sure that there is enough funds in your bank account 2. You are giving control of payments to the third party, but any mistakes on their part could have negative effects on your account because if you don't let the bank, then the payments will regularly go out of your account therefore losing money

Question 37

Standing order

Answer 37

Instruction to the bank to make regular fixed payments to a person or particular person.

Question 38

Adv

Answer 38

1. bills can be paid automatically 2. you can tell the bank how much you want to pay 3. you can cancel the standing order whenever you want

Question 39

Dis

Answer 39

1. make sure there is enough funds 2. might be charged money if not enough fund 3. you will need to remember when the fund will be coming in