Keywords

Question 1

Interest Rate

Answer 1

The cost of borrowing money or the reward for saving money.

Question 2

Money Owed

Answer 2

Debt

Question 3

Credit Rating

Answer 3

A score given to individuals on how likely they are to repay debts based upon their previous actions.

Question 4

Bankrupt

Answer 4

When an individual or organization legally states its inability to repay debts.

Question 5

Solvent

Answer 5

The ability to meet day-to-day expenditure and repay debts.

Question 6

An account with a bank or building society designed for frequent use.

Answer 6

Current account

Question 7

The ability to withdraw money that you do not have from a current account.

Answer 7

Overdraft

Question 8

Expenditure

Answer 8

The amount of money you need to cover all your expenses/outgoings.

Question 9

Shareholder

Answer 9

Someone who has invested in a company in return for equity.

Question 10

Placing money in a secure place so that it grows in value and can be used in the future.

Answer 10

Saving

Question 11

Investment

Answer 11

Speculative commitment to a business venture in the hope that it generates a financial reward in the future.

Question 12

Insurance

Answer 12

An agreement with a third party to provide compensation against financial loss in line with the conditions laid down in the policy agreement.

Question 13

Regular payments made by an individual or company to an insurance provider in return for protection.

Answer 13

Premiums

Question 14

Cash

Answer 14

Notes and coins in a wide range of denominations.

Question 15

Debit Card

Answer 15

Issued by banks with payments for goods and services being deducted directly from a current account

Question 16

Credit Card

Answer 16

Issued by financial institutions allowing customers to delay payments for goods and services.

Question 17

Cheque

Answer 17

A written order to a bank to make a payment for a specific amount of money from one person’s account to another account.

Question 18

Electronic Transfer

Answer 18

Payment is transferred directly from one bank account to another.

Question 19

Direct debit

Answer 19

An agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods or services received.

Question 20

Liquidity

Answer 20

The ease with which an asset can be converted into cash.

Question 21

Insolvency

Answer 21

A business that cannot meet its financial commitments.

Question 22

Credit Period

Answer 22

The amount of time between purchasing a product on credit and when the credit needs to be paid back.

Question 23

Net Cash Flow

Answer 23

The inflows of a business minus the outflows of the business. The profit for that month.

Question 24

Closing balance

Answer 24

The amount of money a business has at the end of the month.