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WorksheetsFunctions of money
Total questions: 18
Worksheet time: 9mins
What is the purpose of money?
To provide insurance against loss or illness
To store value over time
To measure the value of goods and services
To buy goods and services
Why is money fit for purpose?
Because it can provide insurance against loss or illness.
Because it can maintain its value over time.
Because it can be used to fund purchases.
Because it can be used in transactions.
Which function of money refers to its ability to provide a common measure of value for goods?
Interest rates
Unit of account
Medium of exchange
Store of value
What is the drawback of the bartering system?
Culture and religious beliefs
Interest rates
Coincidence of wants
Life stages
What are some factors that influence the role of money?
Different payment methods
Personal attitudes towards risk
Life stages
Interest rates
What is a common principle of financial planning?
Investment products
Communicating with banks
Different types of bank accounts
Avoid getting into debt
What is the method of payment that involves a fixed amount of money being paid regularly to a person or organization?
Mobile banking
Store card
Charge card
Standing order
Which type of bank account provides the user with a range of additional benefits such as holiday insurance and car breakdown cover?
Standard bank account
Packaged premium account
Basic account
Student account
What are some examples of investment products?
Individual Savings Accounts (ISAs)
Bonds and gilts
Shares
All of the above
Which body is responsible for consumer protection in the financial services industry?
FCA
FOS
FSCS
OFT
What is the role of the Financial Ombudsman Service (FOS)?
To regulate financial services firms
To provide consumer protection in the financial services industry
To resolve disputes between consumers and financial services firms
To provide insurance against loss or illness
What is the main advantage of using money over the bartering system?
It can be used in transactions
It can maintain its value over time
It eliminates the coincidence of wants
It can provide insurance against loss or illness
Which type of bank account is typically offered to young people and students?
Standard bank account
Packaged premium account
Basic account
Student account
What is the role of the Financial Conduct Authority (FCA)?
To provide insurance against loss or illness
To resolve disputes between consumers and financial services firms
To regulate financial services firms
To provide consumer protection in the financial services industry
What is the main disadvantage of using money?
It can be used in transactions
It can lose its value over time due to inflation
It eliminates the need for coincidence of wants
It can provide insurance against loss or illness
What is a common principle of financial planning for retirement?
Investing in high-risk products
Spending all savings
Starting to save and invest as early as possible
Ignoring potential future health care costs
What is the primary function of the Financial Services Compensation Scheme (FSCS)?
To regulate financial services firms.
To resolve disputes between consumers and financial services firms.
To provide insurance against loss or illness.
To provide compensation if a financial firm is unable, or likely to be unable, to pay claims against it.
What is a common risk associated with investment products?
The potential to lose some or all of the money invested
The potential to get into debt
The potential to have a dispute with a financial services firm
The potential to have a bank account closed
