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10 Cards in this Set

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  • Back
To what extent can deposit accounts be said to be secure ?
Apart from the small chance of a bank or building society failing, the capital is secure but the real alue of the capital would be eroded by inflation, the amount of interest could fall on variable interest accounts.
What rate of interest if any, is normally deducted at source from building society accounts ?
20 %
Give 2 reasons why offshore investments may be more risky than similar onshore investments ?
If not denominated in sterling the value of capital and income will be subject to currency fluctuations. The local regularotory regime may not be as strong as that of the FSA in the uk.
What is the minimum age at which a man can take a national savings and investments pansioners bond ?
60 years old.
What is the difference between the taxation of interst on government stocks and on that of local authority stocks ?
Interest on government stocks is normally paid gross but is taxable, whereas that on local authority stocks is paid net of 20% tax.
The price/earnings (P/E) ratio of a share indicaes the relationship between the shares current price and the most recently declared dividend. true or false ?
False, it relates price to the earnings(net profits) per share, profits are not necessarily all distributed as dividends.
How can a company raise additional finance for expansion without borrowing ?
By a rights issue of new shares to existing share holders.
What is a normal distinction between debentures and other loan stocks ?
Debentures are normally secured on company assets.
What change of attitude by lenders led to the establishment of the buy to let market ?
Lenders began to treat buy to let business as resedential rather than commercial applying different underighting principles and lower interest rates
What type of tenancy agreement would normally be used for a but to let property ?
Assured shorthold tenancy