Managing Personal Finance

A facility to overspend on a current account up to an agreed sum

• Overdraft

• Bank Loan

• Mortgage

• Pay day Loan

Which is the odd one out?

• The bank can call it in at any time

• Only available from a current bank account

• Interest is charged on the overdrawn amount

• Spreading the cost of a purchase over a pre agreed period of time

A set amount of money provided, to an individual or couple, for a specific purpose, to be repaid with interest, over a set period of time

• Mortgage

• Personal Loan

• Overdraft

• Hire Purchase

Normally require a substantial deposit e.g. 20% of house value and Payments may be subject to change e.g. if interest rates change are drawbacks of.........?

• Loans

• Mortgages

• Payday Loans

• Overdraft

Immediate use of the item, Spreads cost over a period of time and Fixed instalments are all advantages of ......

• Hire Purchase

• Personal Loan

• Mortgages

• Overdrafts

Issued by the government and when buying them, you are effectively lending money to the government, which promises to pay back the amount in full at a set date, along with interest.

• Premium Bonds

• Corporate Bonds

• Gilts

• Deposit and Savings Accounts

In which savings account is the income earned exempt from income tax?

• Individual Savings Account

• Deposit and Savings Account

• Premium Bonds

• Gilts

How much is a person limited to holding in Premium Bonds?

• £50 000

• £5 000

• £500 000

• None of these

Funds cannot be withdrawn immediately e.g. from an ATM as notice has to be given is a feature of a Deposit and Savings Account.

• True

• False

How can pensions be given?

• Lump Sum

• Regular Payments

• Combination of Lump sum and Regular Payments

• All of these