CeFS Unit 2 Flashcards

?
  • Created by: 13boneo
  • Created on: 25-03-19 10:32
What is an aspiration?
Something you would like to have in the future e.g. owning your own house rather than renting
1 of 27
What is consumer credit?
Another term for borrowing -> 'taking credit' means borrowing, whereas 'credit into' something means it is earning money
2 of 27
What is ethical investing?
When someone chooses to save in a way that means the money will be used for what that individual considers to be good purposes. Ethics are a set of ideas about what people believe is morally right.
3 of 27
What is the feedback effect?
The notion that thoughts and feelings have a direct influence on behaviour.
4 of 27
What is a personal loan? (T1)
A product that allows someone to borrow a fixed amount over a fixed period at a fixed rate of interest.
5 of 27
What is a hire purchase?
A type of secured consumer credit to finance items such as cars and furniture, which involves the borrower repaying over a number of years.
6 of 27
What is capital gains tax? (T2)
A tax payable on the gain (profit) made when you sell or give away an asset, for example property or shares. Each person is allowed to make a certain level of profit before being taxed on it (annual exempt amount).
7 of 27
How much is the annual exempt amount currently?
•£11,700
8 of 27
What is return?
The amount of money gained or lost on an investment relative to the amount invested. Also known as the rate of return (ROR) or return on investment (ROI).
9 of 27
What is an annuity?
A financial product that pays a regular guaranteed income, in return for a lump sum paid to the product provider. It is used by people when they retire.
10 of 27
What is capital growth?
An increase in the market value of an investment, over and above the amount the investor paid for it or paid into it.
11 of 27
What is diversification?
Spreading investments across a range of different products, funds or types of asset so as to reduce the potential impact of any doing particularly badly.
12 of 27
What is an endowment policy?
An insurance product that pays out a lump sum after a specified term or if the insured person dies before the end of the term. Endowment policies are often used as a way of saving over the long term.
13 of 27
What is a savings bond?
A savings product held for a fixed period eg two years. The holder can only make a limited number of withdrawals, or none at all, during that period without incurring a penalty.
14 of 27
What is a Murabaha home purchase plan?
A form of Islamic home purchase plan. The provider buys the property at an agreed price and then sells it immediately to the client at a higher price. The higher price charged to the purchaser reflects the profit element for the provider.
15 of 27
What is an Ijara home purchase plan.
A form of Islamic home purchase plan. The provider buys the client’s selected property. The provider then sells the property to the client for the same price under a promise to purchase agreement, with repayment spread over a term of up to 25 years.
16 of 27
What is SVR?
A provider’s basic mortgage rate, which the provider can decide to change at any time – often such changes follow a change in the Bank of England’s Bank rate.
17 of 27
What is ASU?
Accident, sickness and unemployment (ASU) insurance. A policy that provides cover to the insured party in the event of an accident or sickness that prevents them from working or if they become involuntarily unemployed.
18 of 27
What is a hire purchase?
A type of secured consumer credit to finance items such as cars and furniture, which involves the borrower repaying over a number of years. The borrower does not become the legal owner of the item until all the repayments have been made.
19 of 27
What is a trade union?
An organisation that represents workers within a particular industry or carrying out a particular type of job. Trade unions seek to protect the rights and enhance the working conditions of their members and also offer a range of benefits.
20 of 27
What is competitive demand?
A situation in which two or more products fulfil the same need or want and therefore are in competition with each other for the customer’s money – eg different types of savings product.
21 of 27
What is flexibility in financial terms?
an individual’s ability to react to unexpected events. A financial plan should take such events into account, allowing a person to make changes to the plan when necessary.
22 of 27
What is loan forbearance?
When a lender does not seek to repossess a property as soon as the borrower misses a few monthly payments, instead allowing the customer to stop or make reduced payments for a set period.
23 of 27
What is a sole trader? What is the difference between a sole trader and a limited company?
A business owned and run by a single person. Legally, there is no distinction made between the business and the person who owns it, unlike with a limited company, where the business is a separate legal entity.
24 of 27
What is CSR?
Any action or project in which a company goes beyond the interests of its shareholders and senior management in order to benefit other stakeholder groups, normally with either a social or an environmental purpose.
25 of 27
What is PPI?
An insurance product intended to ensure repayment of loans should a borrower face unexpected events that prevent them from repaying the debt.
26 of 27
What are arrears?
An unpaid overdue debt
27 of 27

Other cards in this set

Card 2

Front

What is consumer credit?

Back

Another term for borrowing -> 'taking credit' means borrowing, whereas 'credit into' something means it is earning money

Card 3

Front

What is ethical investing?

Back

Preview of the front of card 3

Card 4

Front

What is the feedback effect?

Back

Preview of the front of card 4

Card 5

Front

What is a personal loan? (T1)

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Accounting resources:

CEFS
See all Accounting resources »See all Medium & Long Term resources »