LIBF Financial Capability Unit 2 MCQs 1

Which of the following is an example of a 'want'?

• Jewellery
• Food
• Shelter
• Water

Which of the following is an example of an aspiration?

• Getting a good job.
• Buying some new trainers.
• Going to the cinema.
• Obtaining the latest mobile phone.

An investment, when compared to a savings product, is generally:

• more risky but can bring in a higher return.
• less risky but always brings in a lower return.
• less risky but can bring in a higher return.
• more risky but always brings in a lower return.

Advertising can carry:

• both explicit and implicit messages.
• explicit messages only.
• implicit messages only.
• neither explicit nor implicit messages.

Which of the following helps people to decide their general approach to financial matters?

• Values
• Perceptions
• Beliefs
• Attitudes

A budget is a personal financial plan that usually covers a period of:

• one month
• four weeks
• three months
• six months

The table below shows a family's budget. Calculate the disposable income.

• 345
• -345
• 2467
• 2861

The main purpose of a budget, as part of a financial plan, is to:

• avoid getting into financial difficulties.
• discover the best deals in the marketplace.
• ensure that there is always a positive balance.
• guarantee that there will be no financial difficulties.

Opportunity cost can be defined as the:

• cost of something in terms of what has to be given up to achieve it.
• cost of something in terms of what it would have cost without any inflation.
• difference in cost between something bought in the UK and the same thing bought in another European country.
• difference in cost between something bought new and something bought second-hand.

Which of the following is not an example of a significant life-changing event?

• A car failing an MOT.
• A divorce.
• A high return on an investment.
• Career change.