Unit 2 : Personal Finance

Question 1

What does BAC stand for?

Answer 1

Bankers automated cleaning services

Question 2

What does CHQ stand for?

Answer 2

Cheque payment

Question 3

What does POS stand for?

Answer 3

Point of sale/ Debit card Transaction

Question 4

What does D|D stand for?

Answer 4

Direct debit

Question 5

What does ATM stand for?

Answer 5

Automated Teller Machine

Question 6

What does S/O stand for?

Answer 6

Standing order

Question 7

What does DPC stand for?

Answer 7

Direct baking by PC

Question 8

How much is personal allowance?

Answer 8

12,570

Question 9

Basic rate (20%) equal how much taxable income?

Answer 9

Up to 37,700
Meaning when working out income tax you times by 0.2

Question 10

Higher tax rate (40%) equal how much taxable income?

Answer 10

Above £37,700 to £150,000
- this means when working out income tax you times the 37,700 by 0.2 and then rest by 0.4

Question 11

Additional tax rate (45%) equals how much taxable income?

Answer 11

Over £150,000

Question 12

National insurance tax percentage for anything below 37,700?

Answer 12

12%
This means times the amount by 0.12 to figure out national insurance

Question 13

National insurance percentage of income above 50,270?

Answer 13

2%
Times by 0.2 after 0.12

Question 14

How to figure out an increase multipliers?

Answer 14

Time 1.—-
E.g an increase of 34% times by 1.34

Question 15

How to figure out a decrease multiplier?

Answer 15

100% - ?% = ?
Then 0.66

Question 16

What is the yearly threshold?

Answer 16

The minimum amount you need to earn to start paying back student loans

Question 17

Student loans are…

Answer 17

Tuition fee and living costs which is based of parents income/lifestyle

Question 18

What percentage do you pay back of your income over the threshold

Answer 18

9% only allowed to pay back yearly

Question 19

How many plans of students loans are there?

Answer 19

5

Question 20

Plan 1 interest?

Answer 20

4.3%

Question 21

Plan 2 interest?

Answer 21

4.3% to 7.3%

Question 22

Plan 4 interest

Answer 22

4.3%

Question 23

Plan 5 interest?

Answer 23

4.3%