Learning Aim B

Question 1

Name a feature of the Bank of England.

Answer 1

• The UK’s national bank in charge of national debt.

Question 2

Name a pro of the Bank of England?

Answer 2

• Protects the financial stability of the UK.

Question 3

Name a con of the Bank of England.

Answer 3

– Can raise interest rates.

Question 4

Name a feature of Banks.

Answer 4

• Organizes transactions.

Question 5

Name a Pro of Banks?

Answer 5

• Secure place to store money.

Question 6

Name a con of Banks?

Answer 6

• can protect 85,000

Question 7

Name a feature of building societies?

Answer 7

• Handles transactions for half of the public.

Question 8

Name a pro of building societies?

Answer 8

• Secure place to store money.

Question 9

Name a con of building societies?

Answer 9

• can protect 85,000

Question 10

Name a feature of credit unions.

Answer 10

• stores money on behalf of their members.

Question 11

Name a pro of credit unions.

Answer 11

• Secure place to store money.

Question 12

Name a con of credit unions.

Answer 12

• can protect 85,000

Question 13

Name a feature of National Savings and Investments.

Answer 13

• Offers ISAs, premium bonds, and gilts.

Question 14

What is a pro of National Savings and Investments?

Answer 14

• Offers a range of services.

Question 15

What is a con of National Savings and Investments?

Answer 15

• Rates are variable.

Question 16

Name a feature of insurance companies.

Answer 16

• Protects against the loss.

Question 17

Name a pro of insurance companies.

Answer 17

• Wide range of services.

Question 18

Name a con of insurance companies?

Answer 18

• will be charged.

Question 19

Name a feature of pension companies.

Answer 19

• Sell policies to the public.

Question 20

Name a pro of pension companies?

Answer 20

• Experts are employeed.

Question 21

Name a con of pension companies?

Answer 21

• Poor Investent.

Question 22

Name a feature of pawnbrokers.

Answer 22

• Loan money against the security of an item.

Question 23

Name a pro of pawnbrokers?

Answer 23

• Quick and easy cash.

Question 24

Name a con of pawnbrokers?

Answer 24

• The asset could be sold.

Question 25

Name a feature of payday loans.

Answer 25

- offer short-term solutions to now and getting the wage.

Question 26

Name a pro of payday loans?

Answer 26

- Quick way to acquire cash.

Question 27

Name a con of payday loans.

Answer 27

- Interest is charged.

Question 28

Name a pro of a branch.

Answer 28

- Gives customers a high level of confidence.

Question 29

Name a con of Branch.

Answer 29

- Need to travel.

Question 30

Name a pro of online?

Answer 30

- 24/7 Access.

Question 31

Name a con of online.

Answer 31

- Increased risk of hacking.

Question 32

Name a pro of the telephone.

Answer 32

- No charges.

Question 33

Name a con of telephone?

Answer 33

- Fraud may happen.

Question 34

Name a pro of mobile?

Answer 34

- No charges.

Question 35

Name a Con of mobile?

Answer 35

- Hacking

Question 36

Name a Pro of Postal?

Answer 36

- No tech needed

Question 37

Name a con of Postal?

Answer 37

- Post can be lost.

Question 38

What is the function/role/responsibility of the Financial Conduct Authority (FCA)?

Answer 38

- Regulates financial firms to make sure that customers are fairly treated.

Question 39

What is the function/role/responsibility of the Financial Ombudsman service (FOS)?

Answer 39

- resolve disputes between consumers and financial firms for free.

Question 40

What is the function/role/responsibility of the Financial Services Compensation Scheme (FSCS)?

Answer 40

- Compensates consumers up to £85,000 if a financial firm fails.

Question 41

What is the function/role/responsibility of the Consumer Credit Legislation?

Answer 41

- Protects consumers by making credit agreements clear and giving the right to cancel.

Question 42

What is Citizen Advice?

Answer 42

- Charities that offer financial and non-financial products.

Question 43

Name a pro of Citizens Advice?

Answer 43

- Free service.

Question 44

Name a con of Citizens Advice?

Answer 44

- Trained volunteers are not really trained.

Question 45

What are Independent Financial Advisors (IFA)?

Answer 45

- Gives financial advice to consumers.

Question 46

What is a pro of IFA?

Answer 46

- Offered by professionals.

Question 47

What is a con of IFA?

Answer 47

- Service is charged.

Question 48

What are the pros of price comparison websites?

Answer 48

- Free service.

Question 49

What are the cons of price comparison websites?

Answer 49

- Not always guaranteed.

Question 50

What is a debt counsellor?

Answer 50

- Gives advice and support to consumers in debt.

Question 51

What is a pro of a debt counsellor?

Answer 51

- Offered by professionals.

Question 52

What is a con of a debt counsellor?

Answer 52

- Service is charged.

Question 53

What is an individual voluntary agreement (IVA)?

Answer 53

- A legal agreement to pay debt over time.

Question 54

What is a pro of IVA?

Answer 54

- Independent advice.

Question 55

What is a con of IVA?

Answer 55

- Will affect credit score.

Question 56

What is bankruptcy?

Answer 56

- A legal process to write off debts to somebody you cannot.

Question 57

What is a pro of bankruptcy?

Answer 57

- Debt relief.

Question 58

What is a con of bankruptcy?

Answer 58

- Credit score.