CeFS 2021 Unit 1 Case 1 Quiz 2

Question 1

Why might it be a good idea to look at their bank statement online?

Accepted Answer

So they can track expenditure for budgeting and not overspend, So they can look out and spot fraudulent purchases quickly

Question 2

How much of your money in NS&I is covered?

Accepted Answer

100%, no limit

Question 3

If Sam and Emily borrow money what factors could it depend on?

Accepted Answer

Their credit rating & chances of being able to get a good rate of interest, The monthly repayment (£) - can they afford it?

Question 4

What discretionary expenses do Emily and Sam have?

Accepted Answer

Holidays

Question 5

What is a money management service?

Accepted Answer

Connect your bank accounts, create spending pots, savings pots, using apps

Question 6

Which is a disadvantage of CHAPS?

Accepted Answer

Some banks offer faster payment for the value you might need at no cost, There is a fee to do this - around £25-£30

Question 7

When they paid the deposit on the house they paid by CHAPS, what is CHAPS?

Accepted Answer

Same day electronic payment system for large amounts of money

Question 8

Sam and Emily have their mortgage on a direct debit (DD) rather than a standing order (SO), what is the difference?

Accepted Answer

The SO is a fixed monthly amount, the DD can vary each month, The DD is set up by the mortgage company, the SO is set up by Sam/Emily

Question 9

Why would Emily and Sam look for a savings account covered by FSCS?

Accepted Answer

Savings are covered up to £85,000 in the event of the bank going bankrupt

Question 10

Which one is not an advantage of a credit card?

Accepted Answer

Missed minimum payments can involve charges and extra interest

Question 11

Which one is not a Money Management Service

Accepted Answer

Apple

Question 12

What is a cashflow forecast

Accepted Answer

Predicting the future income and outflows (expenditure) over 6-12 months

Question 13

Would it be a good idea for Sam and Emily to borrow money to buy a car?

Accepted Answer

Yes, No

Question 14

Why is it important to check the amount on screen or the card machine when making a contactless payment?

Accepted Answer

To check the final payment amount is correct and you are not overcharged

Question 15

Why might using contactless all the time not be a good idea?

Accepted Answer

Limit up to £30 or £40, The card could get skimmed and used fraudulently, You forget what you have spent - tap and go

Question 16

What is a budget?

Accepted Answer

A plan of your income and expenditure each month

Question 17

Why might Sam and Emily carry out a cashflow forecast?

Accepted Answer

So they can save towards their goals by focusing net cash flow

Question 18

Which one is not a disadvantage of a credit card?

Accepted Answer

Great for emergencies such as boiler breaks or car breaks down

Question 19

What is the benefit to Sam and Emily of a standard current account compared to a packaged current account

Accepted Answer

Do not have to pay a monthly fee but still get a card, apply for overdraft

Question 20

What factors might you look out for when choosing a savings account?

Accepted Answer

Regular or fixed deposit, term of interest rates, instant or limited access

Questions 20