types of organisations - B

Question 1

bank of england

Answer 1

• UK central bank with the responsibility to maintain financial stability for the country
• issue legal tender, controlling interest rates and controlling national debt

Question 2

banks

Answer 2

organisation that handles transactions and stores money on behalf of its customers and supplying credit

Question 3

building societies

Answer 3

• organisation that handles transactions and stores money on behalf of its customers, not a bank
• owned by its members and does not allow shareholders on a stock exchange so costs are kept low

Question 4

credit unions

Answer 4

• NOT FOR PROFIT organisations that handle transactions and store money on behalf of its customers
• members own it and have a voting right
• desire to support the community made up of its members

Question 5

national savings and investments

Answer 5

• government backed organisation
• secure saving option
• ISA, premium bonds, bonds and guilt’s

Question 6

insurance companies

Answer 6

• businesses that protect against the risk of loss in return for a premium
• for profit organisation

Question 7

pension companies

Answer 7

• sell policies privately or through employers that allow them to save money now to fund retirement
• companies normally invest this money to
  increase this value however this is a risk

Question 8

pawnbrokers

Answer 8

• business or individual who loans money against the security of an asset
• if the item is not bought back after a certain period of time, it will be sold on

Question 9

payday loans

Answer 9

• organisations that offer a short-term source of finance to bridge the gap between now and the next wage
• normally low amounts for high interest rate but suitable for an emergency