LIBF U2 Topics 1+2

A for-profit proprietary financial institution owned by its shareholders is known as a...

• credit union.

• building society

• bank.

• investment company.

A financial provider owned by its members, some of whom will be customers saving and borrowing from it is known as...

• a bank.

• a building society.

• an insurance company.

• the government.

In the UK, banks have been around for...

• over 30 years.

• over 300 years.

• thousands of years.

• a short time.

in the UK, building societies have been around for ...

• almost 250 years.

• thousands of years.

• a century.

• a short time.

Managing day-to-day money to pay bills, buy food, save and pay for other essential spending is known as ...

• emergency fund.

• budgeting

• net income.

• banking.

A form of borrowing offered by banks, building societies and some specialist firms. It allows the cardholder to borrow money by paying for things using the card is known as...

• mortgage.

• capital.

• emergency fund.

• credit card.

A pot of money that can be used to cover emergencies, such as unexpected spending, loss of income or other unexpected financial problems is called...

• personal loan.

• net income.

• gross income.

• emergency fund.

A loan to help people buy houses or flats. They are offered mainly by banks and building societies and can last for up to 30 years is called...

• personal loan.

• credit card.

• emergency fund.

• mortgage.

A target; something that the individual wants or needs to achieve is known as...

• income.

• tax.

• bill

• objective.

The main financial planning focus of a young adult will be on:

• paying their bills and possibly short- to medium-term saving for a car or a deposit on a house.

• paying off their mortgage and saving for retirement

• maximising the income from their savings

• taking a gap year and travelling the world.