TOPIC 9

Question 1

Budget balance

Answer 1

Total income minus total expenditure: a person’s net financial situation.

Question 2

Budget deficit

Answer 2

A situation in which outgoings exceed income.

Question 3

Budget surplus

Answer 3

A sum of money available once all the essential expenditure in a given period, e.g a month, has been made.

Question 4

Chancellor of the Exchequer

Answer 4

The British Cabinet minister responsible for financial and economic matters and in charge of the Treasury.

Question 5

Credit history

Answer 5

A record of money borrowed and repaid by an individual. These records are held by credit reference agencies and providers will
check the individual’s credit history when a prospective customer applies for a borrowing product.

Question 6

Discretionary expenditure

Answer 6

Voluntary spending on products and services that people want now, and savings towards items they aspire to buy in the future.

Question 7

Duty

Answer 7

The tax paid on certain items, including fuel, cigarettes and alcohol.

Question 8

National insurance contributions

Answer 8

Money is deducted from the pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits.

Question 9

Real terms

Answer 9

A value adjusted to account for changes in inflation.

Question 10

Utility

Answer 10

An essential public service, such as electricity, gas, water and sewerage.