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Finance quiz Unit 3 Flashcards | StudBud
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Finance quiz Unit 3
Finance quiz Unit 3
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Questions
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Answers
1
What does NS&I stand for?
Nation Savings and Investment
National Savings and Interest
National Savings and Inflation
National Savings and Insurance
2
The
FCA
are responsible for regulating:
The protection on consumers over the financial markets.
Consumers by providing a compensation scheme to protect them.
The supervision of financial services providers.
Consumers complaints by providing a service
3
The
increase in the market value
of the
goods and services
produced by an
economy
over time.
Market Segmentation
PESTEL
Economic Growth
Inflation
4
A
Loan to Value
is the ratio of...
The size of the loan to the size of the inflated price of the property
The size of the loan to the value of the property
The size of the loan to the disposable income of an individual
The value of the property to the inflated price of the house
5
Sustainable
personal finance is about:
Ensuring your Financial plan is balanced between different time periods
Maintaining dynamic financial plans to cover needs, wants and aspirations
Achieving and maintaining a balance between personal income and expenditure
Being able to adapt between in the changing of products in a financial plan
6
When an individual decides to "
remortgage
", they are...
Canceling their mortgage
Paying off their mortgage all in one go
Securing their mortgage against their property
Replacing an existing mortgage with a new one
7
A
debt relief order
enables people to write off their debts if they are unable to repay them after:
6 months
24 months
12 months
18 months
8
The aim of
zero-based budgeting
is to:
To ensure your disposable income is spent on your aspirations
To ensure your bank balance does not go below zero at the end of the month
To ensure your disposable income is spent purposefully.
Tp ensure that your income and expenditure is exactly the same
9
State the term "
commodity
".
A term for negative interest rates
The legal process where a financial institution takes your assets
Goods that share the same characteristics
To fail to repay borrowing when a repayment its due
10
Up until the 1970s
borrowing
was widely seen as something to be
avoided
at all possibilities.
False
True
11
Planning for
unforeseen events
is known as:
Cash flow planning
Contingency planning
Flexible financial planning
Short term financial planning
12
What is it when you '
envelope budget plan
'?
When a person set aside money for a specific purpose in an envelope
A method of budgeting where every penny of income is allocated in envelopes
A tool that allows a user to monitor their cash flow in an envelope
A situation in which outgoings exceed income
13
Which of these is an advantage of having a zero hour contract
Unpredictable hours
Less pressure
Flexibility
Can earn extra income
14
If a borrower
defaults
on an
unsecured loan
, then:
The lender will start to take payments directly from the borrower's salary
The creditor will obtain possession bought on the loan.
They will obtain a bad financial footprint.
The borrower will be obliged to court with a CCJ on them
15
What is the term for the shares of a company quoted on the Stock Exchange in an investment
Sequestration
Equity
Commidity
Gilt
16
Having a gym membership is discretionary outgoings.
True
False
17
What was the aim for
Project Merlin
?
To minimise mortgage investment to the sub prime market
To decrease global warming
Cutting bonuses would make more money available for business loans
Cutting bonuses would create more money to invest in emerging marekts
18
Which of the following is a type of low cost personal pension plan?
A stakeholder pension plan
A shareholder pension plan
NEST
An occupational pension plan
19
A
code
operated by the
FCA
that pays 50% of bonuses paid to banks high hierarchy staff:
Remuneration code
Financial Services Code
Codes of Conduct
Consolidation code
20
Out of these options, which one is the main
advantage for outsourcing?
Increases firms costs
Improve customer service
Economies of Scale
Increased chance of investment from a venture capitalist
21
Money deducted from individuals income which are used by the government to
fund state pensions?
National insurance contributions
Non-contributory benefits
National income insurance
Value added tax
22
An
equity loan
is most likely to financially benefit someone who uses the fund for:
Putting a deposit on a home
Paying for a wedding
Making large home improvements
Buying a car
23
How did Pupils benefit from Financial Capability being added to the National Curriculum?
They should leave school with a basic level of financial literacy
They should leave school with a low level of financial literacy
They should leave school with financial exclusion
They should leave school with a high level of financial literacy
24
What is the main disadvantage of having an unauthorised overdraft?
Non of these
It can permently damage your financial footprint/credit score
It can become more expensive to borrow in the future
Daily weekly and monthly fees can be charged until you arent overdrawn
25
How the money the government raised from taxation and the amount they borrow and spend is known as:
National Insurance contributions
Monetary Policy Committee
Fiscal policy
Information faliure
26
The delivery of financial services at affordable cost to disadvantage segments of society is known as:
Contributory benefits
Employment and support allowance
Financial inclusion
Help to buy scheme
27
The
type of benefit
for people of working age, that will eventually replace six other benefits:
Life assurance
Life insurance
Universal Credit
Pension
