Business Btec personal finance Questions And Answers Rated A+ New Update Assured Satisfaction

nctions and role of money - Answer-Money flowing in and out- it comes in your account and money comes out your account store of value - Answer-It allows us to use it in the future as it keeps its value Legal tender - Answer-It is legally recognized form of payment- old £1 getting rid of Role of money - Answer-is affected by a wide number of factors. individuals may change their attitude to money based on their situation they find themselves in Personal attitudes - Answer-individuals that will vary in their attitudes to risk and reward as well as savings and borrowing. Life stages - Answer-As you grow up from childhood to adulthood, your financial needs change, each stage of your life has different implication that will affect not just your needs but also your attitude to money. Culture - Answer-affected by tradition, religion and ethical beliefs, will have different attitudes to money. The older generation of Chinese people, for example have a culture a saving. Life events - Answer-Events throughout your life will impact on your attitude to money. These events may be within your control, for example going to university, travelling abroad, getting married or starting a family or any be outside your control, example illness, financial gains and losses External influences - Answer-Factors outside your control, including the state of the economy. For example the state of the economy will impact on wages, availability of jobs and the prices of goods and services. Decisions by the government will affect the amount of the tax you pay or the amount you receive in benefits. These all directly affect your ability to spend and save Interest rates - Answer-cost of borrowing money or the reward for saving money If interest rates are low maybe more willing to borrowing money or spend on credit, when interest rates are high there is more of an incentive to saveDebt - Answer-money that you owe credit rating - Answer-a score given to individual of how likely they are from previously debt based on your previous action solvent - Answer-the ability to meet day by day expenditure inflation - Answer-Inflation is a general risk in prices. This leads to the value of money falling, that is, £10 today was worth less that £10 a year ago. Expenditure now can help counter the effect of inflation cash - Answer-money in coins and notes credit cards - Answer-It's a card that has your money and you can borrow funds