Unit 1, Topic 6

Question 1

What, if any, is the minimum age at which a person can take out an NS&I Direct Saver?
A) There is no minimum age
B) 16
C) 18

Answer 1

B) 16

Question 2

Jane has invested in short-dated gilts. According to the UK Debt Management Office definition, this means that:
A) The gilts will have a redemption date within the next seven years
B) Interest on the gilts will not be paid to her until the end of the term
C) The gilts will have a redemption date within the next ten years
D) She will be unable to access her capital until the end of the term

Answer 2

A) The gilts will have a redemption date within the next seven years

Question 3

The main difference between corporate bonds and gilts is that corporate bonds:
A) Usually pay a variable rate of interest
B) Are usually for larger amounts of money
C) Normally have no specified redemption date
D) Are considered to be higher-risk investments

Answer 3

D) Are considered to be higher-risk investments

Question 4

Jack opens an account so that his wages can be paid into it. He can use his account to pay bills such as utilities and rent via direct debit, and he can use his debit card to make purchases online and in shops, but he cannot have an overdraft. What kind of account does Jack have?
A) Packaged account
B) An interbank account
C) A basic bank account
D) A debit account

Answer 4

C) A basic bank account

Question 5

A bank deposit account is a good place to hold a ‘rainy day fund’. True or False

Answer 5

True

Question 6

Interest on NS&I Income Bonds is tax-free. True or False

Answer 6

False

Question 7

A eurobond is the equivalent to a gilt, but issued by a government within the eurozone. True or False

Answer 7

False