All Topics Flashcards
In 2008, personal debt in the UK hit a peak of
1,400 billion
Financial providers should encourage individuals to
use a budget to plan their spending
Financial services providers should support an individual’s sustainability by encouraging them to
open a savings account.
Financial services providers should support an individual’s sustainability, in relation to the use of credit cards, by advising them to pay off:
the entire balance each month, if possible.
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?
16 hours
What is the minimum number of days that an employee must be off sick before the employer has to pay Statutory Sick Pay?
4 days
Some benefits are paid to people who are working full-time, but this will depend on their level of income. These benefits are:
means tested
Car insurance companies are contributing to helping the environment by offering lower premiums to:
fuel efficient car
If the Consumer Prices Index (CPI) fell from 5% to 1% now, this means that prices overall
are increasing by 1%
Which of the following ways of presenting data is most suitable to be able to easily see trends at a glance?
graph
If the rate of inflation in the UK fell from 3% to 1% per annum, which of the following would be
happening?
The general level of prices would be rising by 1% per annum
Which of the following is the first step involved in drawing up a budget?
Identifying and listing all sources of income
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:
£16,000 in savings
which type of expenditure would a council tax payment be classed as?
mandatory
what is the new state benefit that replaced the six existing benefits with a single monthly payment for those living on a low income?
Universal Credit
why is the interest rate on a personal loan usually higher than the interest rate on a mortgage?
personal loans are unsecured and mortgage borrowing is secured
what does envelope budgeting include?
dividing income into seperate pots
in PESTLE analysis, changes to interest rates, inflation and exchange rates are all type of what factor?
Economic
which national charity ‘helps people across the uk to tackle their debts and manage their money wisely’?
The Money Advice Trust
what is an example of a government monetary policy
decreasing interest rates
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?
income support
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.
National insurance contributions
A flexible financial plan is sometimes called a…..
dynamic plan
Hire purchase arrangements are typically offered by
retailers
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.
OEICs, Investment trusts and unit trusts
A person’s eligibility for the full state pension is based on their:
National Insurance contributions record.
At what minimum age do people become eligible to claim Attendance Allowance?
66
Which of the following is payable to people who have been receiving Statutory Sick Pay (SSP) after the maximum period?
-ESA.
-JSA
-PIP
-SMI
ESA
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?
£180.
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
Rising interest rates
The Financial Services Compensation Scheme (FSCS) is mainly funded by
providers who are members of the scheme
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 graph
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.
reduced demand for houses and flats
A perfect market is one where the way in which goods are bought and sold does not need to be:
regulated.
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.
dividing income into separate pots
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.
Chas, who wants to buy his first house
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 car repair bill
Which of the following online financial planning tools is offered free of charge to consumers?
-Goodbudget.
-Moneydance
-Money Dashboard.
-You Need a Budget.
Money Dashboard
Which of the following describes the sacrifice that is involved when things change for an individual?
-Alternative cost.
-Offset cost.
-Opportunity cost.
-Social cost.
Opportunity Cost
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
PayPlan
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?
16
Marcus has been told that his level of savings will affect his eligibility for Income Support. This confirms that his savings are at least:
£6,000.
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.
-personal loans are typically unsecured and mortgage borrowing is secured.
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.
An interest-free period is always available.
A fixed-rate mortgage is most suitable for someone who thinks that interest rates will:
rise with time
Which of the following debt management solutions does not have legal and administrative fees?
-Bankruptcy
-Debt relief order.
-Individual voluntary arrangement.
-Informal payment plan.
Informal Payment Plan
Under a debt management plan, to whom does the debtor make monthly payments?
The debt management plan provider
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.
increased trade liberalisation.
The global financial crisis that began in 2007 resulted from problems that occurred first in which country?
US
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
Payroll operation.
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
An increase of global commodity prices
Countries that have adopted the euro as their currency have their interest rates set by:
the European Central Bank
Bitcoin is:
-a virtual currency
-an electronic wallet.
-an online payment system.
-legal tender.
a virtual currency
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.
£10,000.
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
commission
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?
£50,000.
