Saving, borrowing, investing
taking money from a bank and returning it back later
borrowing
services offered by financial institutions to facilitate people’s saving, borrowing and investing
financial products
A plan of income and spending
budget
Sources of finance can be internal and external.
True or False?
True
A cost of borrowing and reward for investing and saving.
interest
spending money in order to get more money
investing
•Your money, that is deposited into your account after you are getting paid (Credit card / Debit card)
Money coming in _________and going out_________
Income / Spending
Capital raised inside a business is called
internal
Interest can be only simple. True or False?
False, it can be simple and compound
•Ali wants to buy a new smartphone. He has been putting away 50 AED every month.
saving
a long term loan given for the purchase of land / house / apartment
(overdraft / mortgage)
mortgage
Formula for balance
Total Income - Total Spending
Money that is required for less than a year is called.
(short-term / long-term)
Expenditure can be capital and revenue. True or False?
True
there is a chance that the person could lose some or all of their money while investing
risk
A bank account for saving money
Savings account
Ahmed earns 20,000 AED and spends 11,000 AED. What is his balance?
9,000 AED
Examples of (internal / external) sources of finance are: owner's savings, retained profits, working capital, sale of fixed assets.
internal
Spending on assets that are used for more than one year are called_________ (capital or revenue)
capital
Why do people invest money?
to increase their wealth or to prepare for the future
An Islamic financial certificate
Sukuk
Name two advantages of budgeting
save / control money/ achieve goals / prepare for emergencies / buy things you need and want
Examples of (short-term / long-term) external sources are: bank loan, hire purchase, leasing, trade credit, debt factoring.
long-term
Ahmed needs to buy sugar, milk and coffee beans for his coffee shop. He also needs to pay wages to his employees. What expenditures are these? (capital /revenue)
revenue