Finance Quiz (Cefs)

Question 1

Which of the following forms of borrowing requires the amount borrowed to be repaid each month?

Accepted Answer

Charge card

Question 2

Which of the following is usually a feature of a personal loan?

Accepted Answer

It is for a fixed period of time

Question 3

Which of the following is usually a feature of a savings bond?

Accepted Answer

It is for a set period of time

Question 4

An administration order in England applies to people who have less that how much in debts?

Accepted Answer

£5,000

Question 5

Which of these is an external factor that will significantly affect an individual's position.

Accepted Answer

Being made redundant

Question 6

Roy has 5 goats and would like 10 sheep. James has 10 sheep and wants 5 goats. Exchange occurs:

Accepted Answer

coincidence of wants

Question 7

A cash flow forecast is used to calculate the monthly net cash position. True or false?

Accepted Answer

True

Question 8

APR means:

Accepted Answer

Annual percentage rate

Question 9

Bank notes have a promise on them to 'pay the bearer on the demand of the sum of.' Signed by:

Accepted Answer

Chief Cashier of the bank of England

Question 10

Demutualisation describes the process of:

Accepted Answer

building societies becoming banks

Question 11

Which of the following terms describe the value of an amount of money

Accepted Answer

Purchasing power

Question 12

Citizens Advice charges for the advice it gives on debt management. True or false?

Accepted Answer

False

Question 13

Which of the following is a demographic factor that affects an individuals life cycle?

Accepted Answer

Life expectancy

Question 14

A debt relief enables someone to write off their debt after a maximum of:

Accepted Answer

12 months

Question 15

Which of the following best describes a packaged current account?

Accepted Answer

extra benefit for a monthly fee

Question 16

Under bankruptcy and debt relief orders, student loans are never written off. True or false?

Accepted Answer

True

Question 17

An unauthorised overdraft is usually a more expensive form of borrowing than an authorised.

Accepted Answer

True

Question 18

For money to function as intended it needs to be:

Accepted Answer

Acceptable

Question 19

David earns £21,500 a year. He has a personal allowance of £11,000,pays20%ITcalculate earnings.

Accepted Answer

£2,100

Question 20

The Financial Services Compensation Scheme protects the saving of an individual up to:

Accepted Answer

£75,000 per person, per provider

Question 21

If a bank wishes to close someone's account how much notice does the bank need to give to them?

Accepted Answer

Two months notice

Question 22

The interest rate on a savings account is indicated by which of the following?

Accepted Answer

AER

Question 23

Which of the following is a function of money?

Accepted Answer

Exchange

Question 24

The Financial services (Banking Reform) Bill includes ring-fencing. For a bank this means:

Accepted Answer

Separating everyday banking activities frominvestmentbanking

Question 25

Simon is unhappy with the decision made by the Financial Ombudsman Service, what can he do?

Accepted Answer

go to the courts

Question 26

What is the meaning of the term 'mutual' in relation to building societies?

Accepted Answer

its customers

Question 27

In the past, one of the disadvantages of using cattle as money was that they:

Accepted Answer

are not easily divisible

Question 28

A key feature of money is that all coins and bank notes needs to be homogenous. True of false?

Accepted Answer

True

Question 29

Which of the following customers will directly benefit if interest rates rise?

Accepted Answer

Rajiv, who has a variable-rate cash ISA

Question 30

At which of the following key stages of the life cycle is a person aged 18-25 years?

Accepted Answer

Young Adult

Question 31

According to the Working Time Regulations, an employee cannot work longer than:

Accepted Answer

48 hours per week, averaged over 17 weeks

Question 32

Which of the following is normally accepted as proof of address when opening a bank account.

Accepted Answer

A water bill issued two months ago

Question 33

In a cash flow forecast which would be an example of mandatory expenditure?

Accepted Answer

Council tax

Question 34

Building societies are mutual organisations, meaning they are owned by their:

Accepted Answer

Members

Question 35

Which of the following ensures that financial services operate so they benefit the marketplace?

Accepted Answer

The Financial Conduct Authority (FCA)

Question 36

Which of the following applies to pre-paid travel cards?

Accepted Answer

can be loaded with any currency

Question 37

Which of the following is the UK's government's major advantage as a provider ofsavingsproducts

Accepted Answer

safe

Question 38

Tom is planning to provide financial security for old age. Which product is best for him?

Accepted Answer

Personal pension

Question 39

The Consumer Credit Card provides protection for goods and services for a credit card up to:

Accepted Answer

£30,000

Question 40

Joe is 18 years old. Which of these is most likely to be his largest expenditure?

Accepted Answer

Learning to drive

Question 41

Which of the following is responsible for deducting NI and income tax from an employees pay?

Accepted Answer

Their Employer

Question 42

The Financial Conduct Authority (FCA) reports directly to:

Accepted Answer

HM Treasury

Question 43

If interest rates are increasing, who is most likely to be better off as a result?

Accepted Answer

is saving

Question 44

Someone with a good credit history has never borrowed money. True or false?

Accepted Answer

False

Question 45

The middle age stage of the life cycle is usually described as being 26-40 years old.

Accepted Answer

False

Question 46

Which of these is the most flexible way for someone to meet their borrowing needs?

Accepted Answer

Overdraft

Question 47

To open an account an applicant supplies the financial services with proof of identity.Thisisto

Accepted Answer

prevent money laundering

Question 48

Sam lives in England and has £16,000 debt, can she use a debt relief to get this written off?

Accepted Answer

False

Question 49

National Savings and Investment products are guaranteed by:

Accepted Answer

HM Treasury

Question 50

Life expectancy of a girl born in 2010 is 83. True or false?

Accepted Answer

True

Question 51

Which of the following has an objective to promote the safety of financial providers.

Accepted Answer

Prudential Regulation Authority (PRA)

Question 52

From 1 April 16 the national minimum wage for employees aged 21-24 is an hourly rate of:

Accepted Answer

£6.70

Question 53

In which stage of the personal life cycle do people most commonly invest?

Accepted Answer

Old age

Question 54

When advertising interest rates , banks must quotes on which of the following?

Accepted Answer

An annual basis

Question 55

Which is most likely to be accepted by external influences during the middle/late middle age.

Accepted Answer

Early retirement

Question 56

Which of the following is considered as money in in the UK?

Accepted Answer

A ten pound note

Question 57

Contactless cards can be used for payments up to a maximum of:

Accepted Answer

£30

Question 58

Which of the following defines the amount a person can earn before they need to pay income tax?

Accepted Answer

Personal Allowance

Question 59

Which of the following changes is not a socio-economic trend?

Accepted Answer

Environmental

Question 60

In 2020 the age men and women receive a pension will be:

Accepted Answer

66

Question 61

National Savings and Investments savings products are popular because the money saved is:

Accepted Answer

100% Guaranteed

Question 62

How many attempts does a debit card holder have to enter their pin beforeatransactionisdeclined

Accepted Answer

Three

Question 63

The main aim of commercial financial services is to do which of the following?

Accepted Answer

Make a profit

Question 64

Discretionary Expenditure should be shown in a cash flow forecast. True or false?

Accepted Answer

True

Finance Quiz (Cefs)

Questions 67

Finance Quiz (Cefs)

Questions 67