LIBF UNIT 2 KEY-TERMS

How the individual feels about the possibility that the value of their savings could fluctuate over time and that they could even lose some of their funds is known as:

• capacity for loss

• risk tolerance

• risk vs. reward

• emergency fund

A measure of the extent to which a value goes up or down over a period of time is known as:

• risk tolerance

• capacity for loss

• volatility

• a share.

A savings account that allows the saver to take out money as and when they need it is known as:

• a Notice Account

• an Instant Access Account

• A Sharia Compliant account

• a bond.

A savings account that requires the account holder to give notice if they wish to take money out is known as:

• an Instant Access Account.

• a Notice Account.

• a cash ISA.

• a bond.

A form of borrowing offered by banks, building societies and some specialist firms. It allows the cardholder to borrow money by paying for things using the card is known as...

• mortgage.

• capital.

• emergency fund.

• credit card.

Managing day-to-day money to pay bills, buy food, save and pay for other essential spending is known as ...

• emergency fund.

• budgeting

• net income.

• banking.

A pot of money that can be used to cover emergencies, such as unexpected spending, loss of income or other unexpected financial problems is called...

• personal loan.

• net income.

• gross income.

• emergency fund.

A loan to help people buy houses or flats. They are offered mainly by banks and building societies and can last for up to 30 years is called...

• personal loan.

• credit card.

• emergency fund.

• mortgage.

A target; something that the individual wants or needs to achieve is known as...

• income.

• tax.

• bill

• objective.

A measure of the extent to which a value goes up or down over a period of time is known as:

• risk tolerance

• capacity for loss

• volatility

• a share.