Podcast
Questions and Answers
What is a key feature of a student account?
What is a key feature of a student account?
- It requires a credit history for approval.
- It is designed to support students with overdraft facilities. (correct)
- It provides unlimited access to credit cards.
- It usually offers no interest on savings.
What characterizes a personal loan?
What characterizes a personal loan?
- It requires repayment over an extended period with fluctuations in interest rates.
- It allows immediate ownership of the borrowed goods.
- It is solely available to individuals with excellent credit histories.
- It is repaid in regular installments with interest charged. (correct)
Which type of borrowing provides the use of an item before full payment?
Which type of borrowing provides the use of an item before full payment?
- Overdraft
- Hire Purchase (correct)
- Mortgage
- Personal loan
How does a mortgage typically function?
How does a mortgage typically function?
What does an overdraft allow an individual to do?
What does an overdraft allow an individual to do?
What is the main purpose of a debit card?
What is the main purpose of a debit card?
Which of the following payment methods allows a third party to withdraw money from an account on a set day?
Which of the following payment methods allows a third party to withdraw money from an account on a set day?
What distinguishes a charge card from a credit card?
What distinguishes a charge card from a credit card?
Which type of account typically offers additional incentives for an annual fee?
Which type of account typically offers additional incentives for an annual fee?
How does a pre-paid card function?
How does a pre-paid card function?
Which payment system allows for transactions typically completed on the same day?
Which payment system allows for transactions typically completed on the same day?
What is the characteristic feature of a contactless card?
What is the characteristic feature of a contactless card?
What does a standing order typically arrange?
What does a standing order typically arrange?
Flashcards
Debit Card
Debit Card
A bank-issued card that deducts payments directly from a current account.
Credit Card
Credit Card
A card allowing delayed payments for goods and services.
Electronic Transfer
Electronic Transfer
Direct payment transfer between bank accounts.
Direct Debit
Direct Debit
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Standing Order
Standing Order
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Standard Account
Standard Account
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Packaged Account
Packaged Account
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Contactless Card
Contactless Card
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Basic Account
Basic Account
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Student Account
Student Account
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Overdraft
Overdraft
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Personal Loan
Personal Loan
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Hire Purchase
Hire Purchase
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Study Notes
Payment Methods
- Cash: Notes and coins in various denominations.
- Debit Card: Payments deducted directly from a current account.
- Credit Card: Allows delayed payment for goods and services.
- Cheque: A written order for payment from one account to another.
- Electronic Transfer: Direct transfer between bank accounts.
- Direct Debit: Automated payments from an account on a set date for bills.
- Standing Order: Regular transfers of a set amount to a third-party account.
- Pre-paid Card: Money loaded onto a card, withdrawn for transactions.
- Contactless Card: Wave card at a reader for automatic transactions.
- Charge Card: Delayed payments, full payment due by statement date.
- Store Card: Delayed payments for goods from a particular store.
- Mobile Banking: Financial transactions using mobile devices.
- BACS Faster Payment: Payment transfer in 3 business days (faster available).
- CHAPS: Payment transfer usually within the same business day.
Current Account Types
- Standard: Full banking facilities (cheque book, debit card, overdraft).
- Packaged/Premium: Annual fees or charges for extra benefits (e.g., discounted insurance, no-fee overdraft, event tickets).
- Basic: Limited features, usually for individuals with no or poor credit history.
- Student: Designed for students, may include benefits like interest-free overdraft.
Borrowing Types
- Overdraft: Withdraw funds from a current account (more than available).
- Personal Loan: Borrowing a fixed amount, repaid in installments with interest.
- Hire Purchase: Immediate use of an item, paid in installments until ownership is complete.
- Mortgage: Long-term loan for assets (e.g., property) repaid over time.
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Description
Explore various payment methods including cash, debit, credit cards, and electronic transfers. This quiz covers the basics of each method and how they function in daily transactions. Test your knowledge on modern banking and payment solutions.
