A1 Flashcards
(21 cards)
What are the functions of money
-Unit of account
-Means of exchange
-Store of value
-Legal tender
What are the roles of money
-personal
-life stages
-culture
-life events
-external influences
-interest rates
Definition of debt
Money owed
Definition of credit rating
A score given to indeviduals as how likely they are to repay debts on previous acounts
Definition of bankruptcy
When you can not repay your debt and file for bankruptcy
Define solvent
The ability to meet day-day expenses and repay debt
Define cash
Notes and coins in a wide range of denominations
Define debit card
Card issued by your bank, money spent on goods is deducted from your current account
Credit card
Issued by financial institutions, allows customers to delay payment
Define cheque
A paper transaction giving a bank permission to transfer payment from your account to another persons bank account
Define electronic transfer
Payment is transferred directly from one bank account to another
Define direct debit
Permission given to the bank to make regular payment me to a third party upon request
Define standing order
A fixed amount of money if taken out of your bank account on a specified date
Define prepaid cards
Upload money to the card and spending reduces the balance
Define contactless cards
Payment made by swiping a contactless terminal
Define charge cards
Issued by financial institutions, buy now pay later
Define store cards
Issued by a retail outlet buy now pay later
Define mobile banking
Use a tablet or smartphone to manage your bank accounts
Explain two benifitw of pre-paid credit cards
-Helps you manage your spending and stick to a budget
-it’s safer than to carry large amounts of money and cannot be stolen easily
Advantages of standard accounts
No charge unless overdrawn Can revive wages in pay direct debit cheque books debit cards overdraft facility and cash withdrawls
Disadvantages of standard accounts
No extra benefits
Very low interest
Overdraft is expensive
