LIBF SPECIMEN PAPERS UNIT 1

Low inflation results in:

• greater levels of savings.

• greater unemployment.

• lower interest rates

• more expensive houses

The decimalisation of British currency occurred in the:

• 1950s.

• 1960s

• 1970s.

• 1980s.

The main source of a teacher's income is most likely to be:

• pension income.

• salary.

• savings income.

• state benefits.

Which of the following is exempt from value added tax?

• Adults' clothing.

• Biscuits.

• Furniture.

• Postage stamps.

The system under which employees pay tax is known as Pay As You:

• Earn.

• Go.

• Save.

• Work.

A decrease in income tax is likely to have which of the following effects?

• People are likely to borrow more.

• People are likely to make spending cuts.

• People are likely to save more.

• Work is likely to become less attractive.

Which of the following statements relating to the third sector is correct?

• It exists to make a profit.

• It has no economic impact.

• It includes charities and social enterprises.

• Social enterprises are not permitted to make a profit.

A term used by the regulator to describe good financial management is financial:

• capability.

• capacity.

• competence.

• know-how

Poor financial choices can lead to:

• falling prices.

• low levels of personal debt.

• overspending.

• people saving more money.

Over time, the value of money:

• accumulates.

• appreciates.

• depreciates.

• stabilises.