LIBF Unit 2 University of Strathclyde || A+ Certified.
Budgeting correct answers Managing day-to-day money to pay bills,buy food, save and pay for
other essential spending.
Credit Card correct answers Form of borrowing offered by banks, building societies and some
specialist firms It allows card holders to borrow money by using the card. It is normally the most
expensive way to borrow, unless paid in full every month.
Emergency Fund correct answers A pot of money that can be used to cover emergencies, such as
unexpected spending, loss of income and other unexpected financial problems.
Financial conduct authority correct answers One of the two main regulators of financial services
in the UK. It sets rules and standards that providers must meet.
Financial Planning correct answers Making plans to meet short and long term needs.
Money Management correct answers The process of managing money, including budgeting,
banking, saving, investing and tax planning.
Mortgage correct answers A loan to help people buy houses or flats. They are offered mainly by
banks and building societies and can last up to 30 years.
Net Income correct answers The amount a person earns after deductions have been taken by the
government, i.e for tax and National Insurance.
Objective correct answers A target; something that the individual wants or needs to achieve.
, Personal Loan correct answers Offered by banks, building societies and some specialist terms. It
is usually paid back over a much shorter term than a mortgage, and tends to be unsecured, so the
providers charge higher interest rates to cover the risks.
Unit trust correct answers The most common form (In the UK) of collective funds, allowing
many investors to pool their money together
Capacity for loss correct answers The amount of money that a person could afford to lose (or
needs to risk) when trying to achieve an objective.
Corporate bonds correct answers Are similar to gilts (see below) in the way that they work, but
the borrower would be a large company, rather than the government.
Gilts correct answers The full name for these is 'gilt-edged securities', which derives from the
fact that the certificates used to be edged in gilt. (i.e covered thinly with gold leaf or gold paint)
the government issues gilts when it needs to borrow money and repay at the end of the term.
They have a fixed term between 5-30 years.
Life stages correct answers People go through a number of stages in their life. Each stage is
based on their age. Each of the stages has its own typical opportunities, challenge and needs.
Risk tolerance correct answers How the individual feels about the possibility that the value of
their savings could fluctuate over time.
Shares correct answers Derives from 'shareholder' Shares go up or down in value, according to
how investors and large financial organisations think the business is doing.
Stock Market correct answers A system that regulates the way shares are issued, valued and sold,
and through share which are traded.
Budgeting correct answers Managing day-to-day money to pay bills,buy food, save and pay for
other essential spending.
Credit Card correct answers Form of borrowing offered by banks, building societies and some
specialist firms It allows card holders to borrow money by using the card. It is normally the most
expensive way to borrow, unless paid in full every month.
Emergency Fund correct answers A pot of money that can be used to cover emergencies, such as
unexpected spending, loss of income and other unexpected financial problems.
Financial conduct authority correct answers One of the two main regulators of financial services
in the UK. It sets rules and standards that providers must meet.
Financial Planning correct answers Making plans to meet short and long term needs.
Money Management correct answers The process of managing money, including budgeting,
banking, saving, investing and tax planning.
Mortgage correct answers A loan to help people buy houses or flats. They are offered mainly by
banks and building societies and can last up to 30 years.
Net Income correct answers The amount a person earns after deductions have been taken by the
government, i.e for tax and National Insurance.
Objective correct answers A target; something that the individual wants or needs to achieve.
, Personal Loan correct answers Offered by banks, building societies and some specialist terms. It
is usually paid back over a much shorter term than a mortgage, and tends to be unsecured, so the
providers charge higher interest rates to cover the risks.
Unit trust correct answers The most common form (In the UK) of collective funds, allowing
many investors to pool their money together
Capacity for loss correct answers The amount of money that a person could afford to lose (or
needs to risk) when trying to achieve an objective.
Corporate bonds correct answers Are similar to gilts (see below) in the way that they work, but
the borrower would be a large company, rather than the government.
Gilts correct answers The full name for these is 'gilt-edged securities', which derives from the
fact that the certificates used to be edged in gilt. (i.e covered thinly with gold leaf or gold paint)
the government issues gilts when it needs to borrow money and repay at the end of the term.
They have a fixed term between 5-30 years.
Life stages correct answers People go through a number of stages in their life. Each stage is
based on their age. Each of the stages has its own typical opportunities, challenge and needs.
Risk tolerance correct answers How the individual feels about the possibility that the value of
their savings could fluctuate over time.
Shares correct answers Derives from 'shareholder' Shares go up or down in value, according to
how investors and large financial organisations think the business is doing.
Stock Market correct answers A system that regulates the way shares are issued, valued and sold,
and through share which are traded.
