1st year Summer exam Revision | Baamboozle - Baamboozle

What sort of source of finance should someone choose for a car

Hire purchase/ medium term loan

What source of finance should someone choose for a house

Mortgage, Long term loan

Tom has €10 to spend and is unsure between phone credit and a t shirt. He chooses to buy the credit. Which is the financial cost and the opportunity cost?

Financial cost - €10, OC - T shirt

Why is it important to prepare a budget?

Helps control spending, ensure needs are covered, help save

What are 2 ways to reduce expenditure

Shop around, avoid discretionary expenditure

What is the rule of thumb for the opening cash in a household budget

Also goes in the total

What can a credit union offer to customers?

Saving accounts, personal loans, online banking

Outline one risk of impulse buying

Fall into debt

What is impulse buying?

Spur of the moment purchasing

How can someone reduce their car insurance premiums?

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What factors influence car insurance premiums?

Driver and car details, safety, Claims, Bonus points

Explain the term insurance premium

The price you pay for insurance

What is indemnity?

You cannot profit from insurance

What is insurable interest

You must benefit from its existence and suffer from its loss

Explain the term Utmost Good faith

You cannot lie when taking out insurance

What are the stages of the financial life cycle?

Reliance, Independent, Development, Pre-retirement, Retirement

February's closing cash becoming what in March

Opening Cash

How do you calculate net cash

Total income - total expenditure

True or False: Opportunity cost is the same as financial cost

False

What is the difference between needs and wants

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