Learning Aim A Flashcards
(22 cards)
What are the four functions of money?
Unit of account, means of exchange, store of value, legal tender
What does CHAPS mean?
Payments to UK accounts that arrive on the day you make them.
What does FPS mean?
Faster payments service for electronic transfer.
What does BACS mean?
Electronic system to make payments from one account to another. Take 3 working days.
What is a store card?
Issued by retail outlets so customers can purchase products on credit.
What is a charge card?
Like a credit card but you must pay off in full every month
What is a pre-paid card?
Load them with money and top them up. Often called everyday card.
What is standing order?
Way of setting up a fixed payment. You can set for a fixed amount on a certain date.
What is a current account?
Type of bank account that keeps your money secure and helps manage finances.
Name all types of current account?
Premium, Student, Standard, Basic
Features of a standard account?
You will have a debit card, be able to pay for things online and be able to set up overdraft.
Features of a basic account?
Mostly used by people with a poor credit rating. Has limited facilities and no overdraft.
Features of a premium account?
Has a monthly fee in return for benefits like breakdown cover, cashback on purchases, home insurance and payment protection.
Features of a student account?
Useful for students attending university as they provide interest free overdraft, rail cards and discounts off eating out.
What is hire purchase?
Arrangement where a customer agrees to buy an asset by paying in regular instalments. It remains the property of the seller until all payments are made.
What is payday loan?
Short-term source of finance. Has a high amount of interest. Used in an emergence between paydays.
What is an IVA?
Legal agreements between you and your creditors to pay off your debt. May take 5 or 6 years.
Examples of intangible assets?
Goodwill, Patents, Trademarks, Brand Name
What is a debenture?
A medium to long-term source of capital. Usually paid back as a lump sum. They are a form of loan.
What is debt factoring?
Selling the debts people owe them to a third party.
Advantages of debt factoring?
Improves cash flow, Quick access to capital
Disadvantage of debt factoring?
Profit is reduced, Short-term debt
