Topic 2 KEY DEFINITIONS

1. Tax paid on earnings from employment, self-employment and interest on savings. (6, 3)
5. A mutual organisation that offers its members a wide range of financial products. (8, 7)
6. A bond issued by the UK government – it is a way for the government to borrow money. Most gilts are issued with a redemption date, that is the date at which the government agrees to buy them back. Between their issue and the redemption date the gilts (4)
8. A sum of money placed by a customer with a provider such as a bank, building society or credit union. (7)
9. A type of collective investment, the most common form in the UK. (4, 5)
10. See corporate bonds, government bonds and savings bonds below. (5)

2. An increase in the market value of an investment, over and above the amount the investor paid for it or paid into it. (7, 6)
3. Her Majesty’s Revenue and Customs – the organisation that collects taxes on behalf of the government. (4)
4. National Savings & Investments, a provider that is backed by the Treasury (the government department that manages the UK’s finances). (3)
7. 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). (6)

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