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Finance Diploma > All Topics > Flashcards

All Topics Flashcards

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1
Q

In 2008, personal debt in the UK hit a peak of

A

1,400 billion

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2
Q

Financial providers should encourage individuals to

A

use a budget to plan their spending

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3
Q

Financial services providers should support an individual’s sustainability by encouraging them to

A

open a savings account.

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4
Q

Financial services providers should support an individual’s sustainability, in relation to the use of credit cards, by advising them to pay off:

A

the entire balance each month, if possible.

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5
Q

To be eligible for a contributions-based Jobseeker’s Allowance, an individual can only work on average a maximum of how many hours per week?

A

16 hours

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6
Q

What is the minimum number of days that an employee must be off sick before the employer has to pay Statutory Sick Pay?

A

4 days

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7
Q

Some benefits are paid to people who are working full-time, but this will depend on their level of income. These benefits are:

A

means tested

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8
Q

Car insurance companies are contributing to helping the environment by offering lower premiums to:

A

fuel efficient car

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9
Q

If the Consumer Prices Index (CPI) fell from 5% to 1% now, this means that prices overall

A

are increasing by 1%

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10
Q

Which of the following ways of presenting data is most suitable to be able to easily see trends at a glance?

A

graph

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11
Q

If the rate of inflation in the UK fell from 3% to 1% per annum, which of the following would be
happening?

A

The general level of prices would be rising by 1% per annum

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12
Q

Which of the following is the first step involved in drawing up a budget?

A

Identifying and listing all sources of income

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13
Q

To be eligible for an income-based Jobseeker’s Allowance, an individual (and a partner, if there is
one), can only have a maximum of:

A

£16,000 in savings

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14
Q

which type of expenditure would a council tax payment be classed as?

A

mandatory

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15
Q

what is the new state benefit that replaced the six existing benefits with a single monthly payment for those living on a low income?

A

Universal Credit

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16
Q

why is the interest rate on a personal loan usually higher than the interest rate on a mortgage?

A

personal loans are unsecured and mortgage borrowing is secured

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17
Q

what does envelope budgeting include?

A

dividing income into seperate pots

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18
Q

in PESTLE analysis, changes to interest rates, inflation and exchange rates are all type of what factor?

A

Economic

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19
Q

which national charity ‘helps people across the uk to tackle their debts and manage their money wisely’?

A

The Money Advice Trust

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20
Q

what is an example of a government monetary policy

A

decreasing interest rates

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21
Q

jan is only able to work a couple hours each day as she is her mothers full-time carer. Jan is most likely entitled to what?

A

income support

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22
Q

When drawing up a budget, which of the following is most likely to be categorized as mandatory
expenditure?
-Mobile phone contract payments
-Mortgage instalments
-National Insurance contributions.
-Personal loan repayments.

A

National insurance contributions

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23
Q

A flexible financial plan is sometimes called a…..

A

dynamic plan

24
Q

Hire purchase arrangements are typically offered by

A

retailers

25
Q

Which of the following can be used to invest in government bonds?
-Investment trusts and OEICs only.
-Investment trusts and unit trusts only.
-OEICs and unit trusts only.
-OEICs, investment trusts and unit trusts.

A

OEICs, Investment trusts and unit trusts

26
Q

A person’s eligibility for the full state pension is based on their:

A

National Insurance contributions record.

27
Q

At what minimum age do people become eligible to claim Attendance Allowance?

A

66

28
Q

Which of the following is payable to people who have been receiving Statutory Sick Pay (SSP) after the maximum period?
-ESA.
-JSA
-PIP
-SMI

A

ESA

29
Q

Jamelia works full-time and has earned £200 gross per week for the past year. If she is eligible for Statutory Maternity Pay, what weekly amount will she initially receive?

A

£180.

30
Q

Sonja has a variable-rate mortgage. Which of the following is likely to have the greatest impact on Sonja’s financial situation?
-Declining inflation rates.
-Falling unemployment.
-Increasing property prices
-Rising interest rates

A

Rising interest rates

31
Q

The Financial Services Compensation Scheme (FSCS) is mainly funded by

A

providers who are members of the scheme

32
Q

Which of the following ways of presenting data is most suitable to be able to easily see trends at a glance?
-A graph.
-A list
-A pie chart
-A table

A

A graph

33
Q

What is the most likely outcome of higher interest rates on the mortgage market?
- Increased demand for houses and flats.
-Less people with mortgage arrears.
-More new properties built.
-Reduced demand for houses and flats.

A

reduced demand for houses and flats

34
Q

A perfect market is one where the way in which goods are bought and sold does not need to be:

A

regulated.

35
Q

Which of the following is true of the envelope method of budgeting? It involves:
-budgeting for every penny.
-dividing income into separate pots
-keeping all surplus funds in cash.
-the essential use of envelopes.

A

dividing income into separate pots

36
Q

For which of the following people is an improvement in the economy most likely to have a negative effect?
-Amy, who is looking for a job.
-Chas, who wants to buy his first house.
-Frank, who is looking to sell his house
-Jess, who is a self-employed artist.

A

Chas, who wants to buy his first house

37
Q

For which of the following items of expenditure would using an emergency fund be most
appropriate?
-A car repair bill
-A day out with friends.
-A personal loan repayment
-An unexpected meal out.

A

A car repair bill

38
Q

Which of the following online financial planning tools is offered free of charge to consumers?
-Goodbudget.
-Moneydance
-Money Dashboard.
-You Need a Budget.

A

Money Dashboard

39
Q

Which of the following describes the sacrifice that is involved when things change for an individual?
-Alternative cost.
-Offset cost.
-Opportunity cost.
-Social cost.

A

Opportunity Cost

40
Q

Which of the following will be of most help to people seeking to arrange a debt management plan?
-National Debtline.
-PayPlan
-The Money Advice Service
-The Money Charity

A

PayPlan

41
Q

John is aged 65. In determining his eligibility for state benefits, how many hours must he work per week, as a minimum, to be treated as working full-time?

A

16

42
Q

Marcus has been told that his level of savings will affect his eligibility for Income Support. This confirms that his savings are at least:

A

£6,000.

43
Q

Why is the interest rate on a personal loan usually higher than the interest rate on a mortgage?
Because:
-mortgage borrowing is typically for a larger amount than personal loans.
-mortgage borrowing is typically over a longer term than a personal loan.
-personal loans are open-ended and have no set term.
-personal loans are typically unsecured and mortgage borrowing is secured.

A

-personal loans are typically unsecured and mortgage borrowing is secured.

44
Q

Which of the following is true of credit cards when used for purchases only?
-An interest-free period is always available.
-Borrowers can miss a monthly payment if they wish
-Interest is payable from the date of each transaction.
-The debt must be repaid in full each month.

A

An interest-free period is always available.

45
Q

A fixed-rate mortgage is most suitable for someone who thinks that interest rates will:

A

rise with time

46
Q

Which of the following debt management solutions does not have legal and administrative fees?
-Bankruptcy
-Debt relief order.
-Individual voluntary arrangement.
-Informal payment plan.

A

Informal Payment Plan

47
Q

Under a debt management plan, to whom does the debtor make monthly payments?

A

The debt management plan provider

48
Q

The International Monetary Fund (IMF) has stated that the major factors in the development of globalisation have been advances in ICT and:
-increased competition.
-increased trade liberalisation.
-reduced communication
-reduced exchange rates.

A

increased trade liberalisation.

49
Q

The global financial crisis that began in 2007 resulted from problems that occurred first in which country?

A

US

50
Q

Which of the following activities of an investment fund management company is most likely to be outsourced?
-Fund management
-Insurance underwriting
-Payroll operation.
-Sales and marketing

A

Payroll operation.

51
Q

An increase in economic growth in world emerging markets can cause which of the following
problems for established economies?
-A decrease of house prices
-A decrease of inflation
-An increase of earnings for individuals.
-An increase of global commodity prices

A

An increase of global commodity prices

52
Q

Countries that have adopted the euro as their currency have their interest rates set by:

A

the European Central Bank

53
Q

Bitcoin is:
-a virtual currency
-an electronic wallet.
-an online payment system.
-legal tender.

A

a virtual currency

54
Q

Sacha bought a property for £200,000 and used the Help to Buy mortgage guarantee scheme.
What minimum deposit amount did he need?
-£10,000.
-£20,000.
-£30,000.
-£40,000.

A

£10,000.

55
Q

Changes in regulation means that independent financial advisers who provide advice on investment products no longer receive:

access to personal details.

commission.

fees

stamp duty

A

commission

56
Q

Jerome is a director of a bank and receives a bonus of £100,000. Under the Capital Requirements
Directive (CRD) IV, how much of it, if any, must be paid in the form of shares?

A

£50,000.

Finance Diploma (8 decks)

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