LiBF Unit 2 PPE 1

A sensible minimum amount for an emergency fund for most families would be three to six months:

• discretionary expenditure.
• disposable income.
• essential expenditure.
• gross income.

Collective funds are typically offered by:

• building societies.
• insurance companies.
• investment companies.
• mortgage brokers.

For a young adult, which of the following would typically be classed as a long-term financial plan?
Saving for:

• a holiday in 12 months' time.
• a new car.
• college.
• their retirement.

An example of unearned income is:

• bonuses.
• overtime.
• rental income.
• sales commission.

An increase in interest rates could lead to a budget deficit for an individual with which of the following financial products?

• Fixed-rate mortgage.
• Fixed-rate savings.
• Variable-rate mortgage.
• Variable-rate savings.

If the pound weakens against the euro then:

• exports from the UK to the eurozone become cheaper.
• fewer tourists will visit the UK from eurozone countries.
• imports from eurozone to the UK become cheaper.
• interest rates in the UK will rise.

Increased company profits generally lead to:

• higher levels of unemployment.
• lower government tax receipts.
• lower personal income.
• reduced government borrowing.

Which of the following is a way to pay regular bills that vary in amount?

• Bacs.
• Direct debit.
• Faster Payments.
• Standing order.

Which of the following is a correct definition of 'value for money'?

• A budget product.
• A low-cost brand.
• The cheapest product.
• The right product at the right price.

Which of the following taxes is included in the price of many of the goods we buy?

• Capital gains tax.
• Corporation tax.
• Income tax.
• Value added tax.