IFS - Unit 2

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Advertising can carry what sort of messages...?
Both explicit and implicit messages
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A personal belief is more specific than a value. True or false?
True
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A budget is a personal financial plan that usually covers a period of...
A personal financial plan covers a period of one month
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What is opportunity cost?
Oppoprtunity cost relates to sacrificing one thing to achive another.
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What is the avergae life expectancy for a male in the UK?
The average life expectancy for a male is 79 years old.
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When a person passes risk to someone else, for instance by taking out an insurance policy, this is known as...?
Risk Transfer
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Which tax might be paid if an individual sells a valuable painting?
Capital gains tax
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Whn borrowing money to buy a property, the ratio of the money borrowed to what the property is worth is know as the...
LTV (Loan-to-Value). This is the finanical ratio used by lenders to express the ratio of a loan to the value of an asset purchased.
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What is derived demand?
Derived demand is where a financial product is in demand because it enables people to achieve their wants.
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What in an investment?
An investment is a longer term form of saving; people invest to save for a longer term want/aspiration. It is more risky but can bring in a higher return than a long term savings product.
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What is hire purchase?
Hire purchase is a type of secured consumer credit to finance items such as cars and furniture, which also involves the borrower repaying over a number of years,
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What are the internal factors that influence needs, wants and aspirations?
Internal factors include; values, beliefs, attitudes, perceptions and preferences.
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What are the external factors that influence needs, wants and aspirations?
External factors include; marketing and advertising, peer pressure and trends, fashions and role models.
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What is ethical investing?
Ethical investing involves someone choosing to save in a way that means the money will be used for what the individual considers to be good purposes,
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What type of law prohibits the payment of interest on a debt and so Muslims are not allowed to borrow money via a Western-type mortgage or loan?
Sharia Law
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What is capital growth?
Capital growth is when the market value of the investment is greater when sold than the amount they paid for it. When they cash in the investment, they will receive a lump sum, which they can use to finance their planned project.
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What are unit trusts?
Units trusts are the most common form of collective investment in the UK and they appeal to investors who want to buy shares but who are too small or inexperienced to be able to invest on their own.
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What does each unit represent in an unit trust?
Each unit represents a proportion of the fund's total asset value. They are open-ended, whic means that more units can be created when more money is invested. Unit trusts are not allowed to borrow money.
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What are investment trusts?
Investment trusts are also common collective investments in the UK, but unlike unit trusts, they are not unitised funds.
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Other cards in this set

Card 2

Front

A personal belief is more specific than a value. True or false?

Back

True

Card 3

Front

A budget is a personal financial plan that usually covers a period of...

Back

Preview of the front of card 3

Card 4

Front

What is opportunity cost?

Back

Preview of the front of card 4

Card 5

Front

What is the avergae life expectancy for a male in the UK?

Back

Preview of the front of card 5
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