Many candidates did not answer the question on the differences between savings and current account in a tabular form.
The question on advantages of savings was popular and well answered.
The question on “premium and beneficiary” was not well answered by the candidates. The most important words in the definition of premium which “money paid at regular interval” were not used by most of the candidates.
The required answers to the question are as follows:
1a. Differences between savings account and current account.
SAVINGS |
CURRENT |
|
- A chequebook is used |
|
- Does not yield interest |
|
-Bank charges are paid |
- Only the owner of the account can withdraw money from it
|
- Another person can be authorised to withdraw money from it. |
- Overdraft is not possible
|
- Overdraft is possible |
- Cheque cannot be deposited in a savings account
|
-Cheque deposit is done in current account. |
- Savings account can be used as a collateral for loan
|
- Current account cannot be used as a collateral for loan |
- A holder cannot withdraw below a certain amount of money
|
-A holder can withdraw all the money in the account |
- Can be opened with a little amount of money
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- A bigger amount of money is required for opening. |
Note: Candidate loses 1 mark out of the total for not tabulating.
1(b) Advantages of savings
- Used for business investments to increase wealth
- Helps in times of emergency
- Serves as means of income on retirement or loss of job
- Helps in meeting immediate needs
- Helps in meeting future needs
- Money saved in the bank yields interest
1(c) Definition of insurance terms
(i) Premium: This is money paid at regular interval for an insurance policy.
(ii) Beneficiary: This is the person receiving the benefit of the insurance policy
at maturity/death of the insured.
Note: Look for the underlined or its equivalent for full mark.
