Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

BTECH Business > Personal Finance > Flashcards

Personal Finance Flashcards

(47 cards)

Start Studying
1
Q

What are the four functions of money

A

Unit of account
Means of exchange
Store of value
Legal tender

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are three factors affecting your view of money

A

Personal attitudes
Life stages
Culture

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Why plan expenditure

A

Control costs
Maintain good credit crating
Remain solvent
Avoid bankruptcy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Risks of not planning expenditure

A

Getting into debt
Insufficient funds to repay loans
Legal action
Poor credit rating

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are four types of current account

A

Standard account
Packaged premium account
Student account
Basic account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

6 types of borrowing

A

Overdraft
Personal loan
Hire purchase
Mortgage
Credit card
Payday loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Two types of ISA

A

Cash ISA
Stocks and shares ISA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

4 types of savings and investments

A

Stocks and shares
Premium bonds
Bonds and guilts
Pensions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

6 types of insurance

A

Car
Travel
Life
Pet
Health
Home

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Types of financial organs ions

A

Bank of England
General banks
Building societies
Credit unions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Consumer protection agencies

A

FCA - financial conduct authority
FOS - financial ombudsman service
FSCS - financial services compensation scheme

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Consumer advice organisations

A

Citizens advice
Debt counsellors
Independent financial advisers(IFAS)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Advnatges of cash

A

Accepted in most places
Very portable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Disadvantages of cash

A

Can be stolen or counterfeited, can’t be used for online purchases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Advantages of credit card

A

Cardholder has short interest free periods of amount borrowed
Very portable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Disadvantages of credit cards

A

Interest changes if there are a mounts left over after interest free periods
Risk of cardholder overspending
Some retailers charge a fee for using credit cards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Advnatges of standing order

A

Payments do not change so consumer can plan expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Disadvantage of standing order

A

Payer must have sufficient funds in their bank account to cover payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Advnatges of direct debit

Study These Flashcards
A

Simple way to pay regular bills

20
Q

Disadvantages of direct debits

Study These Flashcards
A

Payer must hack sufficient funds in their bank account
Varying amounts can make it difficult for payer to plan expenditure

21
Q

Advantages of debit card

Study These Flashcards
A

Secure method, no need for cash
Small risk of cardholder overspending

22
Q

Disadvantages of debit cards

Study These Flashcards
A

Can be used for online purchases which may encourage overspending
Risk that card details can be hacked

23
Q

Advantage of a cheque

Study These Flashcards
A

Fairly secure method as only the payee can cash the cheque

24
Q

Disadvantages of a cheque

Study These Flashcards
A

Once the payee chases the cheque it takes at least 3 days for the amount to be available in their account
Although still widely used, some retailers no longer accept cheques

25
Advantages of prepaid cards
Widely accepted by retails Cannot spend more than the amount of cash on the card
26
Disadvantages of prepaid cards
If lost or stolen the cash on the card is lost Some cards have set up and transaction fees
27
Advnatges of charge cards
Interest free loan Gives cardholder till end of month to pay off
28
Disadvantages of telephone banking
Full access may be limited to set hours Call centres and automated telephone systems can frustrate customers Higher risk of fraud and identity theft
29
Advantages of overdraft
Interest is charged only on the amount outstanding Can be paid off without penalties An overdraft facility can be prearranged and only used if needed Provides a short term solution to cash flow problems
30
Disadvantages of home and contents insurance
Premiums are an additional expense to home ownership Some items cannot be replaced due to a value beyond the financial worth e.g. jewellery
31
Advantages of mobile banking
Convenient as it can be used at any time and place Secure
32
What is the role of money
Different cultures, affected by tradition, religion and ethical beliefs, will have different attitudes to money. Chinese saving and young spending
33
Disadvantages of national savings and investments
Rates are variable Not as easy to access due to lack of a high street pressure Often required to give notice on withdrawals
34
Advantages of an independent financial advisor
Advice is offered by professionals in the field Services offered are regulated by the FCA and FOS Advisers will take time to understand an individuals full financial situation
35
Disadvantages of bankers automated clearing service
Faster payment not offered by all banks A limit is set on the amount that can be sent
36
Advantages of a pay day loan
Easy to apply and qualify Fast and flexible Can help with cash flow problems
37
Advantages of grants
No need to repay and no interest charges No loss of ownership or control
38
What are the risks of saving
Low or zero risk as money saved is guaranteed to be available in the future Inflation can reduce the spending power of money saved
39
Disadvantages of payday loan
Interest rates are very high and the cumulative Amount to be repaid can quickly spiral out of control
40
Advantages of owners capital
No interest payments or need to repay Shows High level of commitment from the owner
41
Advnatges of break even
The business knows how many items it must sell in order t break even Can set targets Easy way to calculate profit or loss at different levels of output
42
Disadvantages of credit card
Interest is charged on balances not paid Off within a month Can encourage a customer to overspend Getting into debt
43
Limitations of a Cash flow forecast
Based on forecasts so can be inaccurate Cannot plan for unexpected events such as a rise in the cost of raw materials Takes time to produce cash flow forecast
44
Disadvantages of a charge card
Must be paid in full each month Often an annual fixed fee is applied
45
Examples of outflows/payments
Cash purchase Credit purchase Purchase of assets VAT Bank interest paid Rent
46
Advantages of a mortgage
It can be paid back over a long period of time The interest rate charged is often lower then the rate of the bank loan
47
What are the rewards for saving
Interest payments Financial security/ peace of mind

BTECH Business (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions