Exam Questions About Perosnal Finance

Question 1

Benefits of maintaining good credit

Answer 1

-lower interest on loans and credit cards
-Lower interest rates
-Easier to get approved for loans

Question 2

Life events which can have significant negative consequences for someone’s personal finance

Answer 2

-job loss = major impact on financial status
-health problems = have to pay for medical expenses
-divorce = pay child support or split assets and investments
-retirement =no longer have regular income

Question 3

2 features of student current accounts

Answer 3

-free or low cost overdraft
-discounts and offers on spending eg travel
- free or low-cost banking eg low monthly fees

Question 4

2 consequences of being declared personally bankrupt

Answer 4

-loss of assets
-restrictions on credit & negative credit rating =hard time getting credit in the future

Question 5

Trade payables

Answer 5

The amount of money a business owes to their suppliers

Question 6

Trade receivables

Answer 6

The amount of money owed by customers to a business