1. 6.2 Money and Interest Rates
Understand what is meant by money and interest rates.
Understand that there are different rates of interest and the reasons for this.

2. KEY TERMS
Money – anything that is generally acceptable as a medium of exchange.
Banks and Building Societies – Financial institutions that accept deposits and make loans.
Interest Rate – the reward for saving and the cost of borrowing.

3. What is money Please pay attention to the Learning tip on page 78.
Key terms Page 78

4. Why are there different interest rates?
1. Saving v Borrowing
2. Competition between banks and building societies
3. Other factors.

5. Factors affecting loans
1. Risk
2. Security.