Share 1st year Summer exam Revision
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What is the difference between needs and wants
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True or False: Opportunity cost is the same as financial cost
False
How do you calculate net cash
Total income - total expenditure
February's closing cash becoming what in March
Opening Cash
What are the stages of the financial life cycle?
Reliance, Independent, Development, Pre-retirement, Retirement
Explain the term Utmost Good faith
You cannot lie when taking out insurance
What is insurable interest
You must benefit from its existence and suffer from its loss
What is indemnity?
You cannot profit from insurance
Explain the term insurance premium
The price you pay for insurance
What factors influence car insurance premiums?
Driver and car details, safety, Claims, Bonus points
How can someone reduce their car insurance premiums?
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What is impulse buying?
Spur of the moment purchasing
Outline one risk of impulse buying
Fall into debt
What can a credit union offer to customers?
Saving accounts, personal loans, online banking
What is the rule of thumb for the opening cash in a household budget
Also goes in the total
What are 2 ways to reduce expenditure
Shop around, avoid discretionary expenditure
