Unit 2 Topics 1, 2 & 3. 'Planning'

Question 1

A fixed rate bond does not have the following features

Accepted Answer

Instant Access

Question 2

The cost of car insurance will be determined by...

Accepted Answer

All of these

Question 3

Investing in shares or bonds is a long-term investment. What does long-term mean?

Accepted Answer

5 years or longer

Question 4

Teenagers spending priorities tend to be…

Accepted Answer

short-term?

Question 5

Which of these financial priorities is least likely to be relevant for a mature adult?

Accepted Answer

Saving to get driving lessons.

Question 6

When considering an investment in shares, for how long should you be usually be looking to invest?

Accepted Answer

At least five years.

Question 7

Which of these types of investment involves the least risk?

Accepted Answer

Saving in a bank account.

Question 8

Which is not a medium-term objective for someone in their late teens

Accepted Answer

Pension planning

Question 9

What financial priorities do under-12s have?

Accepted Answer

They have no financial priorities.

Question 10

What is 'Capacity for Loss'?

Accepted Answer

the feeling about how an investment could go down in value as well as up, the amount of money that a person could afford to lose

Question 11

Why might young adults move away from home?

Accepted Answer

They are studying at college or university.

Question 12

In terms of Interest Rates, what does 'AER' stand for?

Accepted Answer

Annual Equivalent Rate

Question 13

FCA stands for

Accepted Answer

Financial Conduct Authority

Question 14

In finance, which of these best describes 'volatility'?

Accepted Answer

how much a value goes up or down over a period of time.

Question 15

What is 'personal allowance'

Accepted Answer

The first part of income on which most people pay no income tax

Question 16

Currents accounts are only provided by banks

Accepted Answer

False

Question 17

'Compound interest' is where…

Accepted Answer

The interest is added onto the amount already in the deposit

Question 18

An example of a need is….

Accepted Answer

Shelter

Question 19

What is 'insolvency'?

Accepted Answer

When a company cannot afford to pay its debts; similar to bankruptcy.

Question 20

What is an emergency fund?

Accepted Answer

Money for an unexpected bill(s)

Question 21

If an estate left by someone is greater than £325,000 then how much is the tax on any amount over £325,000?

Accepted Answer

40%

Question 22

Buildings insurance will only pay for ……?

Accepted Answer

Repairs or reconstruction of a building

Question 23

The key element of short-term financial planning is

Accepted Answer

Easy access to funds

Question 24

A long-term goal might include….

Accepted Answer

Home ownership

Question 25

How long is roughly defined as short term?

Accepted Answer

Between one week and one year

Question 26

An example of a want is…

Accepted Answer

Designer clothes

Question 27

Which of these is most likely to make a young adult remain with their parents rather than move out?

Accepted Answer

They are saving to get a place of their own.

Question 28

What does the Citizens Advice Bureau provide help with?

Accepted Answer

Money and legal problems

Question 29

A notice account pays a higher interest rate than a savings account because…

Accepted Answer

You have to wait a period of time to get access to your money

Question 30

What is 'Risk Tolerance'?

Accepted Answer

the feeling about how an investment could go down in value as well as up

Question 31

In which of these stages of life are you most likely to have the most time *and* money to travel?

Accepted Answer

Old age.

Question 32

How long is roughly defined as long term?

Accepted Answer

Over 5 years

Question 33

The Financial Services Compensation Scheme protects savers for money in their bank accounts up to how much?

Accepted Answer

£85,000

Question 34

What is a Credit Union?

Accepted Answer

A financial co-operative working for its members

Question 35

Banks have been around in the UK for over 300 years. What is their purpose?

Accepted Answer

All of these

Question 36

An 'estate' is the total value of an individual's property, possessions and other assets.

Accepted Answer

True

Question 37

If you are in middle age, which of these are not likely to be your priority?

Accepted Answer

Converting savings into income to pay for care.

Question 38

In which of these stages of life are you most likely to be saving to buy a home?

Accepted Answer

Mature adult.

Question 39

Money for the short term is best put where?

Accepted Answer

In a savings account

Question 40

The lowest rate of interest usually comes from….

Accepted Answer

Savings Account

Question 41

Sharia Compliant Accounts are designed to comply to the teachings of which religion

Accepted Answer

Islam

Question 42

If you don't have all the money needed to buy a house, what is the best way to buy it?

Accepted Answer

Mortgage

Question 43

Which of these is least likely to affect someone’s financial planning?

Accepted Answer

Friendships.

Question 44

Interest paid on savings is a form of income. Do people pay tax on this interest?

Accepted Answer

Depends on how much you earn

Question 45

Personal loans are usually for a period of...

Accepted Answer

1 to 5 years

Question 46

Which of these types of investment involves the most risk?

Accepted Answer

Investing in shares.

Question 47

High volatility means higher risk.

Accepted Answer

True

Question 48

In which of these stages of life are you most likely to be able to invest in shares?

Accepted Answer

Mature Adult, Middle age.

Question 49

For somebody who must travel for their work, a cheap car is a need not a want.

Accepted Answer

True

Question 50

How long is roughly defined as medium term?

Accepted Answer

Between one and five years

Question 51

ISA stands for...

Accepted Answer

Individual Savings Account

Unit 2 Topics 1, 2 & 3. 'Planning'

Questions 51

Unit 2 Topics 1, 2 & 3. 'Planning'

Questions 51