LiBF unit 2

For which of the following can an ATM not be used?

• Changing your address

• Changing your PIN.

• Check your balance.

• Printing a statement.

What would a gas company use to take a payment from a customer's bank account each month?

• A direct debit.

• A standing order.

• An automated sweep.

• An express transfer.

Which of the following is an advantage of using internet banking to manage your money?

Internet banking enables you to:

• get a better credit score.

• have access to your account 24 hours a day.

• make purchases on the internet

• stop debit card payments

Compared to a debit card, a credit card:

• cannot be used to make payments

• cannot be used to withdraw cash.

• is a way of borrowing money.

• is linked to a current account.

Which of the following applies only to overdrafts?

• AER.

• CPI

• EAR

• RPI

What is the most likely reason for paying for something in advance?

The:

• bank needs it.

• buyer chooses to pay this way.

• credit card company requires it.

• seller insists on it.

Which of the following statements about insurance is correct?

• All risks are avoided.

• The insurance company takes the risk

• The insured person has no risk at all.

• There is usually no risk.

The money that a person has to pay for insurance cover is known as which of the following?

• Assurance.

• Dividend.

• interest.

• Premium.

Legally, people are allowed to insure their spouse against death. This is due to the legal principle of:

• agency.

• indemnity.

• insurable interest.

• utmost good faith.

Which of the following is not an example of an expenditure?

• Interest on savings

• Mobile phone bill.

• Rent paid.

• Road tax.