Unit 3 - Personal and Business Finance 3.0 / 5 based on 2 ratings ? BusinessMoneyBTEC NationalNone Created by: zoewatts07Created on: 17-01-17 13:58 What is money? Unit of account, Store of wealth/value, Means of exchange & Methods of deferred payment 1 of 14 What is a Unit of Account? Unit by which value of a thing is accounted and compared. It is one of the primary functions of money. 2 of 14 What is Store of wealth/value? A store of value is any form of wealth that maintains its value without depreciating. Allows for future use as it keeps value e.g. savings. 3 of 14 What is means of exchange? The medium of exchange is currency. Allows us to trade more easily without the need for barter. 4 of 14 What is methods of deferred payment? A loan arrangement in which the borrower is allowed to start making payments at some specified time in the future. e.g a mortgage 5 of 14 What is legal tender? Coins or banknotes that must be accepted if offered in payment of a debt. 6 of 14 Define what an interest rate is. The cost of borrowing money or the reward for saving money 7 of 14 What is Debt? Money owed. 8 of 14 What are Credit Ratings? A score given to individuals on how likely they are to repay debts based upon their previous actions. 9 of 14 What does Bankrupt mean? When a individual or organisation legally states its inability to repay debts. 10 of 14 What is a Solvent? The ability to meet day-to-day expenditure and repay debts. 11 of 14 What is expenditure? Money paid out 12 of 14 How many types of current accounts are there? 4 13 of 14 Name the different types of current accounts? Basic, Standard, Student and Packaged/Premium 14 of 14
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