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What is meant by ‘Unit of Account’
Unit of Account is where a monetary value is placed on an item/service.
How would a persons financial needs change throughout their life?
Childhood - limited. Adolescence - indepdendence. Younf adult - house, car, career. Middle age - family support, saving for children, lifestyle. Old age - downs
Give 2 examples of external influences on finances
Changing interest rates Inflation Government action e.g. Brexit Taxation
What are the 2 things interest rates affect?
Interest rates dictate how much money you pay back on products such as loans and how much money you are paid for saving money within a bank/building society.
How can you avoid debt?
Making informed decisions Living within your financial means Ensuring that your income covers your outgoings
What could the outcome of legal actions be?
This can range from paying fines, having property seized by bailiffs and serving a prison sentence.
What does 'Remaining Solvent' mean?
Being solvent refers to being able to pay your day-to-day outgoings.
What is your credit rating based on?
Your credit rating gives you a score based on your past financial decisions. This score indicates how much of a risk you are to financial institutions such as b
What does 'Inflation' mean?
nflation is the average price rises across all industries within a country. This means that money does not lose its value but your spending power falls
What type of card is issued by a bank for their customers to make purchases/cash withdrawals.
Debit Cards
What type of card is a way of borrowing money from a lender such as a bank.
Credit Cards
What does BACS stand for?
Bankers’ Automated Clearing Service
What is an overdraft?
An overdraft is an agreed amount that an individual/business can be overdrawn without facing penalty charges
What is a payday loan?
Payday loans are small, high interest loans that are taken out normally for emergency expenses such as repairs or unexpected bills.
What does ISA stand for?
Individual Savings Account
What is the Bank of England responsible for?
Maintaining a healthy economy as a whole. Issuing legal tender, setting interest rates and controlling the national debt.
