Unit 3 Personal Finance

Money! What is classed as legal tender in England and Wales?

• High Street Vouchers

• Royal Mint Coins and Bank of England Notes

• Cheques and Contactless payments

• Euros and Cents

The correct definition of a Poor Credit Rating?

• A poor credit rating will affect your ability to borrow in the future

• A poor credit rating will affect your ability to consolidate debts in the future

• A poor credit rating stops you from setting up a direct debit

• A poor credit rating allows you to go over your overdraft without Bank charges

What does a CCJ stand for?

• County Council Judgement

• County Court Judge

• County Court Judgement

• Court Case Judge

The main indexes that contribute to and influence the measure of Inflation?

• Consumer Price Index (CPI) and the Average Transaction Value (ATV)

• Retail Price Index (RPI) and the New York Stock Exchange (NYS)

• Consumer Price Index (CPI) and the Wholesale Price Index (WPI)

• Retail Price Index (RPI) and the Retail Returns Index (RRI)

When planning your personal finances to save for a deposit for your first home, you may wish to avoid?

• Having a structured saving plan to save towards a deposit?

• Looking at your monthly outgoings and making savings to save towards a deposit?

• Having to take out an overdraft to meet your monthly saving goal to put aside towards a deposit?

• Making an appointment with a Financial Advisor to advice on saving towards a deposit?

Which Bank provides the best Mortgage deal for a first-time buyer purchasing a £140,000 home with £20,000 deposit?

• Bank One – 2 years fixed at 1.24%, then 2.6% variable

• Bank Two – 2 years fixed at 1.1% then 3% variable with £2,500 product fee

• Bank Three – 2 years fixed at 1.25% then 2.7% variable

• Bank Four – 2 years fixed at 2.24%, then 3% variable

Which action below is not part of how card payments are made?

• The Bank of England, move money between Banks based on information from Visa

• Card Payments are included in a Bank Statement

• Banks will authorise card payments

• When a card payment is “unaccepted” payment continues

The correct statement that assesses an advantage of using a credit card?

• Interest is charged on balances not paid off

• Can encourage overspending and people to get into debt

• Cards are widely accepted and offer a degree of protection, suitable for online transactions

• Interest charged on cash withdrawals and limits set on credit allowed

What two advantages do customers have by setting up direct debits from their bank account?

• Regular payment calendar and with a fee made payable by the vendor to do so

• Regular payment calendar and mistakes can be dealt with the following payment period

• An easy way to make regular payments and for the payee to adjust a smaller payment if funds are not available for that period

• An easy way to make regular payments and the amount can vary depending on requirements of the vendor for that payment period

Why is a CHAPs payment advised when making large payments?

• If you buy something expensive, you want to know when the seller gets the money, the payment is managed Bank to Bank

• Generates a receipt when paying for large items

• Limits the amount that can be transferred

• Two-day secure payment function (Bank to Bank)