Unit 3 Topic 1

Question 1

Planning for unforeseen events is known as:

Accepted Answer

contingency planning

Question 2

The main providers of current accounts are:

Accepted Answer

banks and building societies

Question 3

Which of the following lending products will charge the highest interest rate?

Accepted Answer

A payday loan

Question 4

In relation to the amount of money spent on small purchases people tend to:

Accepted Answer

underestimate the amount they spend

Question 5

An investment trust is an example of a collective investment scheme

Accepted Answer

True

Question 6

Failing to make adequate contingency plans can prevent achieving sustainable personal finances

Accepted Answer

True

Question 7

Sustainable personal finance is about

Accepted Answer

short medium & long term plans of expected income & expense, income & expenditure to satisfy needs, wants and aspirations

Question 8

Which of the following is a type of low-cost personal pension?

Accepted Answer

A stakeholder pension plan

Question 9

Cash-flow modelling software programmes are used for short-term, straightforward scenarios

Accepted Answer

False

Question 10

Long-term financial planning would take into account funding for:

Accepted Answer

children going to university

Question 11

The first step in drawing up a new financial plan is to

Accepted Answer

list goods and services that one is likely to spend money on

Question 12

The government's annual Budget is:

Accepted Answer

a forecast of the income from taxation it expects to receive

Question 13

Mandatory expenditure:

Accepted Answer

covers payments that you have a legal obligation to pay

Questions 13