LIBF UNIT 2 - TOPIC 1, Exam Preview. 100% Accurate, graded A+

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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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