LIBF UNIT 2 - TOPIC 1, Exam Preview.
100% Accurate, graded A+
Affordability - ✔✔-An important concept in helping people to choose financial products, based on
budgeting and forecasting to help individuals decide wha
...
LIBF UNIT 2 - TOPIC 1, Exam Preview.
100% Accurate, graded A+
Affordability - ✔✔-An important concept in helping people to choose financial products, based on
budgeting and forecasting to help individuals decide what they can afford to spend
Aspirations - ✔✔-Things or experience that people would like to have on the future, for example having
a luxury holiday
Attitudes - ✔✔-People's thoughts and feelings at a given time and place, whether it be about another
person, an event or an issue
Beliefs - ✔✔-Specific and detailed personal convictions about how things are. They can be religious.
Capital - ✔✔-The money or other assets owned by an individual or a business. It refers to he funds
provided by the shareholders, not deposits from customers
Consumer Credit - ✔✔-A term used for borrowing.'Taking credit' or 'buying on credit' refers to
borrowing. However, a credit into a bank account means paying money in.
Credit Card - ✔✔-A card that allows the holder to make face to face purchases as well as online or over
the phone and to withdraw cash from an ATM. The card repays the amount owed to the provider either
in one payment or in instalments. The provider charges interest on cash withdrawals from the time the
withdrawal is made and on purchases after a certain period.
Culture - ✔✔-A society's set of norms about behaviour and attitudes across social groups. It indicates
what society considers to be acceptable and unacceptable
Deposit - ✔✔-A sum of money placed by a customer with a financial services provider
Distribution Channel - ✔✔-The medium through which information is transferred to its intended
recipient, eg email, telephone. It refers to the ways a customer can contact their provider and manage
their account. As known as communication channel.
Ethical Investing - ✔✔-When someone chooses to save in a way that means the money will be used for
what that individual considers to be good purposes. Ethics are a set of ideas about what people believe
is morally right
Feedback Effect - ✔✔-Thoughts and feelings that have a direct influence on behaviour. As expectations
can be self-fulfilling, people's own attitudes affect the outcome of events
Hire Purchase - ✔✔-A type of secured consumer credit to finance items such as cars and furniture,
which involves the borrower repaying over a number of years
Investments - ✔✔-Money paid into financial products; the aim is that the value of the product will grow
over time and so the person will eventually receive back more money than they paid in. Investments are
a way of saving over the medium or long term
Life assurance - ✔✔-A type of insurance policy that pays out a sum of money if the insured person dies
Life cycle - ✔✔-The stages through which people pass between birth and death, including childhood,
teenage years, young adult, mature adult and old ag
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