Flashcards
Providers Topic 7 > Key Terms
Cards in this deck (30)
- 1Assetsthings that a person or a business owns.
for a person this might include property, jewellery or financial products such as company shares. - 2Bonds[Savings/Premium Bonds]
- 3Cash carda card used to withdraw cash from an ATM or branch counters
- 4Cash ISA [Individual Savings Account]an account which pay interest tax free on savings up to a certain level.
- 5Chancellor of ExchequerThe British Cabinet minister responsible for financial and economic matters and in charge of the Treasury
- 6Chequea written instruction to the provider (eg bank or building society) to pay a specified amount into a specified person or organisation.
- 7Children's Bondan investment bond taken out by a parent, legal guardian or (great)grandparent for a child under the age of 16.
Investing between £25 and £3.000 the investor is guaranteed interest at a fixed rate for five years after which the Bond matures.
a nominated parent or guardian controls the Bond until the child reaches 16 - 8Common Bondan interest or circumstance shared by a group of people
e.g. working for the same employer or living in a certain area - 9Communication Channel [Distribution channel]the medium through which information is transferred to its intended recipient, e.g. mail, telephone.
In financial services it refers to the way a customer can contact their provider and manage their account.
It is also referred to as a distribution channel. - 10Demutualisationthe process whereby a mutual organisation (e.g. building society or credit union) legally becomes a shareholder-owned joint stock company (e.g. a bank)
- 11Dividenda payment of profits from a company to its shareholders, often at twice-annually intervals, either as cash or (depending on the plan) as further shares or reacquisitions of shares
- 12Financial Conduct of Authority [FCA]one of the two main regulators of financial services in the UK
-operates independently from the government - 13Financial Services Compensation Scheme [FSCS]a compensation to account holders of up to £85,000 per provider if the provider goes into default.
[default: cannot pay account holders the money they have in their accounts] - 14Insuranceproducts that give financial protection against unexpected (certain) events. e.g. someone who has travel insurance may be able to claim back the cost of a holiday if they have to cancel through illness.
- 15Interest Rate Marginthe difference between the interest rate that a bank charges on borrowing products and the interest rate that it pays on savings
- 16Life assurance [aka Life Cover]a type of insurance policy that pays out a sum of money if the insured person dies
- 17Mortgagea loan taken out to pay for property, usually over a long term such as 25 years
- 18Mutual Organisationan organisation owned by its customers, who are also its members, rather that by shareholders
- 19NS&I [National Savings & Investments]a provider that is backed up by the Treasury
(the government department that manages the UK's finances) - 20Overdraft [Authorised]allows the account holder to withdraw more money than their account holds within certain limits agreed with the bank in advance
- 21Overdraft [Unauthorised]the account holder withdraws more money than actually held in their account without permission from the bank in advance or exceeding the agreed limit with their bank.
attempted withdrawals may not be honored - 22Premium Bonda lottery bond issued by the NS&I entered into a monthly prize draw with tax-free prizes aka "premiums".
Bonds must be held for a full calendar month after the month they were purchased, and retain an equal chance of winning until cashed in. - 23Prudential Regulation Authority [PRA]one of the two main regulators of financial services in the UK.
-a subsidiary of the Bank of England
-ensures banks hold enough capital and liquidity to withstand shocks unaided. - 24Public Limited Company [plc]a large company who's shares are sold and traded to the general public.
the shareholders have limited liability, up to the value of their investment, for the company's debts. - 25Rate of Returnthe amount a saver gains in interest on their savings.
for instance an account paying 0.2%AER offers a lower rate of return than one paying 0.4%AER - 26Savings bondsa savings product held for a fixed period e.g. two years. The holder can only make a limited number of withdrawals, or none at all, during that period
- 27Standing Orderan electronic payment out of an account. these are used to make regular payments of the same amount
- 28Stock and Shares [+Equities]all words used to describe investment that gives the holder part ownership of a company.
If the companies value increases so does the value of your share; if its value falls so does the value of your investment.
Shares are bought and sold on stock exchanges - 29Travel Insurancea product providing coverage for unexpected events such as trip cancellation, medical expenses, travel delays and other losses incurred while traveling.
- 30Treasury [Her (HM) Majesty's Treasury]Her Majesty's (HM) Treasury , the government department responsible for development and implementation of financial and economic policy.
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- A level Business Studies (Topic 07 : Providers) Flashcards on Providers Topic 7 > Key Terms, created by Dawn S_akura on 26/12/2016.
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- Dawn S_akura
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