Pay & Personal taxes
How is basic pay calculated?
Basic rate per hour * number of hours worked.
Name three types of financial institution
Credit unions, commercial banks and an post
The annual car tax is €480, how much will the family pay per month?
€40
Name three services offered by commercial banks?
Current accounts, deposit accounts, savings and investment options, payment facilities (Standing orders, direct debits), borrowing options (credit cards, overdrafts, loans), online banking, foreign currency exchange.
What is the name of the card that can be used to make payments from your current account online and in store?
Debit card
What is a tax credit?
A tax credit reduces the amount of tax a person owes to the government.
Name two commercial banks presently operating in Ireland
AIB, PTSB and Bank of Ireland
Name the three categories of expenditure in a budget
Fixed, irregular and discretionary
What do the letters PIN stand for?
Personal identification number
A credit union is a not for profit financial institution that is owed by its members.
Name 2 statutory deductions?
PAYE, USC, PRSI
Define a financial institution?
A financial institution is an organisation that provides financial services to customers.
How do you calculate net cash?
Total income- total expenditure
What do the letters ATM stand for?
Automated teller machine
Lily is going to Australia on holidays. She wants to exchange €1,000 for Australian dollars $. The we sell rate is 1.5, the we buy rate is 1.48. Which rate will be used to calculate the amount of $ Lily will receive?
We sell rate of 1.5
How is commission calculated?
Total sales/100*commission rate
When opening a bank account aswell as completing an application form what other information will the bank look for?
Proof of identity and proof of address
Car running costs are due to fall by 5% next month as one of the parents will be working from home three days a week. The monthly car running costs at present are €240. How much will they be next month?
€228
What is a bank overdraft?
Permission to withdraw more money from your current account than is in your current account.
Lily returns from her holiday in Australia with $200 left over. She wants to exchange the Australian dollars for euro. The we sell rate is 1.5, the we buy rate is 1.48. Calculate how much euro Lily will receive?
€135.14
How do you calculate net pay?
Gross pay- deductions
Explain the term standing order?
A standing order is an instruction to the bank to pay a fixed amount at regular intervals. E.g Rent
If the expected expenditure is greater than the expected income the net cash is a ___________.
Deficit.
Explain the term direct debit?
Is an agreement between the bank and the account holder that allows variable amounts to be taken from an account to pay a bill e.g. electricity bill
Who is responsible for looking after the interests of financial service consumers in Ireland?
The Central bank of Ireland