Financial Education Unit 2 Practices of Managing Money

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?

• 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 the 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