LIBF Unit 1 Year 10 Vocabulary 2 | Baamboozle - Baamboozle

English 16 Public

All topics covered

Study Slideshow

#Business #Finance #budgeting #inflation #interest

If my savings account offers 6% but inflation is currently at 5% what am I actually earning from my savings?

1%

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What things can inflation affect?

Budgets, household goods, food, cost of petrol, utility bills, savings

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Who sets the rate for interest?

The Bank of England

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If interest rates go up who is this good for?

Savers

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If I borrow £5000 as a personal loan and the interest rate is at 1%, and a set up fee of £50 is added, how much do I actually pay back?

£5100 (5000 + 1%= 5050 + 50 = 5100)

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What is life assurance?

A policy that covers a persons life and pays out a tax-free sum to whoever you choose when you die.

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What is the only legal insurance we must have?

Car insurance

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What factors can affect a persons life cycle and budgeting?

Location, family wealth/lack of, education of finance, money management skills, education level

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What is included in buildings insurance?

The building, potential fire, flood or storm damage,

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Explain fully comprehensive insurance

Fully covers the policy holder for the item insured, the person and other people or belongings damaged

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Explain what third party insurance means

An insurance policy that covers damage to another person's car, along with compensation costs for injuries to other people. This type of cover won't c

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Explain financial risk vs reward

the prospective reward an investor can earn for every pound they risk on an investment.

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Give an example of an external influence that can affect a persons life cycle?

Inflation, Interest rates, recession, unemployment, age of population, pension

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What can travel insurance cover?

Delayed flights, cancelled holidays, illness, lost luggage, financial loss,

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What is the term used to describe how long a person may live for?

Life expectancy

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What is the governments inflation target?

2%

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