Finance Flashcards
(22 cards)
Explain the development of money from bartering to currency
Money evolved from bartering, where goods were exchanged directly, to currency, which is a standardized medium of exchange.
Explain why the USD is used in the British Virgin Islands
The USD is used in the British Virgin Islands for stability and ease of trade with the United States.
Explain how money is earned/received and used
Money is earned through work or investments and is used for purchasing goods and services.
Define terms.
Terms refer to specific definitions or concepts relevant to finance.
Understand the difference between a financial plan and a budget
A financial plan is a comprehensive strategy for managing finances, while a budget is a detailed plan for spending and saving.
Explain the importance of budgeting and creating a budget.
Budgeting helps individuals manage their finances, control spending, and save for future goals.
Identify digital wallets and their functions
Digital wallets store payment information and allow users to make transactions electronically.
Differentiate between saving and investing
Saving is setting aside money for short-term needs, while investing involves using money to generate returns over the long term.
Explain the role of banks in financial transactions
Banks facilitate financial transactions by providing services such as deposits, loans, and payment processing.
Compare risks and benefits of cryptocurrencies vs banks
Cryptocurrencies offer potential for high returns but come with volatility and security risks, while banks provide stability and regulatory protection.
Explain effects of interest rate changes
Interest rate changes can affect borrowing costs, consumer spending, and overall economic activity.
Discuss financial planning and debt management
Financial planning involves setting financial goals, while debt management focuses on strategies to pay off debts effectively.
Assess benefits of ethical business practices
Ethical business practices can enhance reputation, customer loyalty, and long-term profitability.
Apply budgeting strategies
Budgeting strategies include tracking expenses, setting spending limits, and adjusting budgets as needed.
Recall definitions and concepts
Definitions and concepts are fundamental to understanding financial principles and practices.
Analyse and evaluate financial decisions
Analysing financial decisions involves assessing options and their potential impacts on financial goals.
Explain the financial services environment in the Virgin Islands and its importance to the global financial system.
The financial services environment in the Virgin Islands is crucial for international business and investment, contributing to global finance.
State the environmental factors that should exist/complement the continued development of the financial service industry
Key environmental factors include regulatory frameworks, economic stability, and technological advancements.
Discuss how each environmental factor impacts the continued development of the industry
Each factor influences the growth, stability, and competitiveness of the financial services industry.
Describe the importance of/impact of the business companies in global trade
Business companies drive global trade by facilitating transactions, creating jobs, and fostering economic growth.
Understand the role and functions of various service providers
Service providers, such as banks and financial advisors, offer essential services that support financial transactions and planning.
Describe the benefits of the financial services industry.
The financial services industry provides access to capital, risk management, and financial advice, contributing to economic growth.
