6. What is the meaning of these phrases? 1. Merger 2. Building society 3. Issue shares 4. Raise capital 5. Give financial advice 7. What is the purpose of a credit card, and how does it differ from a debit card?

Let's define those phrases and then discuss credit and debit cards.

6. Meaning of Phrases:

1. Merger: A merger is a combination of two or more companies into a single entity. This often involves the absorption of one company by another, or the creation of a completely new company. The goal is typically to achieve greater efficiency, market share, or access to resources.

2. Building society: A building society is a type of financial institution, common in the UK and some other countries. They are essentially banks owned by their members (depositors and borrowers). They primarily offer savings accounts and mortgages.

3. Issue shares: Issuing shares means selling ownership stakes in a company to investors. These shares represent a portion of the company's ownership and entitle the shareholders to a share of the profits (dividends) and voting rights. This is a common way for companies to raise capital.

4. Raise capital: Raising capital refers to the process of obtaining funds to finance a business's operations, expansion, or other initiatives. This can be done through various methods, including issuing shares, borrowing loans, or seeking investments.

5. Give financial advice: Giving financial advice involves providing recommendations or guidance to individuals or organizations on financial matters, such as investments, budgeting, retirement planning, or insurance. Often, this requires professional qualifications and adherence to strict ethical and regulatory standards.


7. Purpose of a Credit Card and its Difference from a Debit Card:

The purpose of a credit card is to provide a short-term loan. When you use a credit card, you're borrowing money from the card issuer (the bank or financial institution). You then have a grace period (usually around 21-25 days) to repay the borrowed amount without incurring interest charges. If you don't pay the balance in full by the due date, you'll be charged interest on the outstanding amount. Credit cards offer convenience and can help build credit history if used responsibly.

A debit card, on the other hand, directly accesses funds from your checking account. When you use a debit card, the money is immediately deducted from your account. Therefore, you can only spend the money you already have. Debit cards offer a safer way to spend money than carrying cash, but they don't offer the same credit-building opportunities or the flexibility of a credit card.

Here's a table summarizing the key differences:

| Feature | Credit Card | Debit Card |
|-----------------|-------------------------------------------|---------------------------------------------|
| Funding Source | Credit from the card issuer | Your checking account |
| Spending Limit | Credit limit set by the issuer | Your account balance |
| Interest Charges | Yes, if balance not paid in full by due date | No |
| Credit Building | Yes | No (generally) |
| Risk of Debt | Higher, if not managed responsibly | Lower, as you can only spend available funds |


In short, a credit card is a borrowing tool, while a debit card is a spending tool. Both offer convenience, but they carry different levels of risk and financial implications.