1. Different plans for different people
Unit 2 Topic 2
Kahoot

2. Different plans for different people
No.
Question A B C
Ans 1
Which of the following is deemed to be the least risky investment?
Deposits
Gilts
Shares 2
Which of the following is deemed to be the most risky investment?
Overseas Shares
Specialist Investments 3
Corporate bonds are loans to:
Governments
Banks
Companies 4
When somebody dies, all of their money and possessions are subject to inheritance tax.
True
False 5
What type of income is a teenage person not likely to receive?
Salary
Wage
Pocket Money 6
Which of these factors is not a factor to consider when thinking about shares?
The size and the success of the company
The country the company operates from
The types of people they employ 7
Explain what a specialist investment is. [3] 8
Give three potential reasons for overseas shares being higher risk. [3] 9
What is capacity for loss? [2] 10
Describe the ‘risk versus reward’ theory. [2]

3. Answers No. Question A B C 1
Which of the following is deemed to be the least risky investment?
Deposits
Gilts
Shares 2
Which of the following is deemed to be the most risky investment?
Overseas Shares
Specialist Investments 3
Corporate bonds are loans to:
Governments
Banks
Companies 4
When somebody dies, all of their money and possessions are subject to inheritance tax.
True
False 5
What type of income is a teenage person not likely to receive?
Salary
Wage
Pocket Money 6
Which of these factors is not a factor to consider when thinking about shares?
The size and the success of the company
The country the company operates from
The types of people they employ 7
Explain what a specialist investment is. [3]
Marks awarded either from any three from the list below or valid alternatives:
Specialist investments are very complicated
They involve gambling on the future price of shares or commodities
Carry a high level of risk.
If all goes well, they could produce spectacular results
If all goes badly, then the investor could lose all their money 8
Give three potential reasons for overseas shares being higher risk. [3]
Any three points from the list below:
the lack of UK influence over how they operate
the risk of political interference
inefficient stock markets
the country’s economic history
the risk of corruption in companies and other organisations. 9
What is capacity for loss? [2]
Marks awarded for points stated below or valid alternatives
The amount of money a person can afford to lose [1]
when trying to achieve their objectives [1] 10
Describe the ‘risk versus reward’ theory. [2]
Marks awarded either from any two from the list below or valid alternatives:
The theory says that if you want to make good returns on an investment, you have to take some risk with the money.
The risks are that the value could go up or down (known as ‘volatility’),
There is even a risk that you could lose some or all of the money.
The reward is that, over the longer term, you could make far more money than by taking little or no risk.
Answers

4. At each life stage, people tend to have different:
Attitudes to debt
Levels of income
Amounts of saving
Life events
Levels of education
Attitudes towards savings
Levels and pattern of spending
Family sizes and structure
Amounts of debt held
Attitudes to risk (and attitudes to the future)

5. Discuss
Here’s a list of 12 typical considerations, concerns or needs of people at certain life stages:
thinking about starting a family
saving for a house
being close to paying off the mortgage
earning more than at any other time
raising money from their home
concerned about providing for retirement
converting savings into income
receiving a weekly allowance
making sure their money goes to the family when they die
saving for a wedding
having a part-time job at weekends
being mainly dependent on others

6. Key Terms for Topic 2 CLICK FOR TIMER
Capacity for loss Corporate Bonds Gilts Life Stages Risk Tolerance Shares Stock Market Volatility
On your whiteboards or books, write down a definitions for these key terms. EXT: Can you give examples of each? 5 minutes
CLICK FOR TIMER

7. Answers
Shares – the name derives from the fact that the shareholder actually owns a share in the company. Shares will go up or down in value, according to how investors and large financial organisations think the company is doing.
Life stages – people go through a number of stages in their life. Each stage is based on their age. Each of the stages has its own typical opportunities, challenges and needs.
Capacity for loss – the amount of money that a person could afford to lose (or needs to risk) when trying to achieve their objectives.
Corporate bonds – are similar to gilts, in the way that they work, but the borrower would be a large company, rather than the government.
Risk tolerance – 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.
Stock market – a system that regulates the way shares are issued, valued and sold, and through which shares are traded.
Gilts – The government issues gilts when it needs to borrow money, and promises to pay a guaranteed rate of interest each year and repay the money at the end of the term.
Volatility – a measure of the extent to which a value goes up or down
over a period of time. High volatility means higher risk.

8. GCSE IFS Finance – Unit 2 Topic 2
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GCSE IFS Finance – Unit 2 Topic 2