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LiBF Level 3 Finance Unit 3 - Topic 1 Flashcards | StudBud
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LiBF Level 3 Finance Unit 3 - Topic 1
LiBF Level 3 Finance Unit 3 - Topic 1
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Flashcards
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Questions
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Answers
1
Long-term financial planning would take into account funding for:
next year's holiday
monthly bills
children going to university
2
Which investement product best describes this: .
A government bond that pays a fixd interest over a period of time
Corporate Bond
Gilt
Unit Trust
3
In relation to the amount of money spent on small purchases people tend to
accurately estimate the amount they spend
overestimate the amount they spend
underestimate the amount they spend
4
An OEIC is open ended (no limit on how many units/shares issued)
False
True
5
Which investement product best describes this: .
Works of Art, Fine Wine, Collectables
Shares
Non Financial Investments
Investement Trusts
6
Sustainable personal finance is about
achieving and maintaining a balance between personal income and expenditure
only using companies that can demonstrate that they are ethical
short, medium and long-term plans detailing expected income and expenditure
7
Which investement product best describes this: .
Closed ended fund with fixed number of shares
Unit Trust
OEIC
Investemebt Trust
8
A Unit Trust is open ended (no limit on how many units/shares issued)
True
False
9
The main providers of current accounts are:
banks and building societies
the government
credit unions
10
Which investement product best describes this: .
Bonds issued by companies.
Unit Trust
Gilt
Corporate Bond
11
Which of the following lending products will charge the highest interest rate?
A personal loan
A payday loan
A credit card
12
Planning for unforeseen events is known as:
cash flow planning
contingency planning
flexible planning
13
The government's annual Budget is
a forecast of the income from taxation expected & what it expects to spend
A forecast of the economic growth it expects to see in the future
A forecast of the interest rates in the future & what it expects to happen
14
Mandatory expenditure
covers payments that have to be paid to meet basic needs
covers payments that fulfil a want or aspiration
covers payments that you have a legal obligation to pay