LIBF revision unit 1

What is a direct debit? - Answer- Payments can be for different amounts of money each time. What are instructions that pay the same amount of money to another account on a regular basis? - Answer- Standing order Pete is 21 years old, what stage is he in his life cycle? - Answer- Young adult What is the age range for someone who is middle aged? - Answer- 41-54 years old Ross is in the teenage life stage, how old could he be? - Answer- 13-19 years old What type of bank account do young people often use? - Answer- Savings account What are the main requirements for everyday banking for young people? - Answer- Store money and withdraw cash What do people look for in a bank account? - Answer- It matches their everyday needs What is the term for the interest rate and the fees that providers charge borrowers? - Answer- Cost of borrowing True/False, can a provider refuse an application to open an account if they think that they will not be a profitable customer? - Answer- True Overdraft costs are presented as an interest rate only, what is this called? - Answer- Equivalent annual rate (EAR) True/False? For an overdraft, the fees and charges are not listed separately? - Answer- False What is the name for the same-day automated payment system which is used for very high value payments? - Answer- CHAPS (Clearing House Automated Payment System) John is in the late middle age stage of his lifecycle, how old could he be? - Answer- 55-65 years old What is another term for the merchant's bank? - Answer- Acquirer Who is the merchant in terms of a credit card? - Answer- The provider/ bank account What is the basic rate for tax? - Answer- £0-£34,500