LIBF Financial Capability Unit 2 MCQs 3

Which of the following is most likely to apply to people in the mature adult stage of the life cycle?

• Their children’s needs take priority.
• Their aspirations become irrelevant.
• Their aspirations become irrelevant.
• They have few needs and wants

Boris, aged 14, hopes to buy a new camera next year and would like to be a lawyer when he leaves school. For Boris, these are respectively a:

• want and an aspiration.
• want and a want.
• need and an aspiration.
• need and a want.

Peer pressure is the pressure to buy a product because:

• your friends have the same product.
• the product is currently being offered at a discount.
• most people approve of the product
• a well-known celebrity has endorsed the product.

Which of the following is a form of product placement?

• A product being mentioned in a TV programme.
• An advertisement in a national newspaper.
• Running a product trial with a group of customers.
• Sponsorship of a local business award.

Which of the following helps people to distinguish between what they consider to be needs and what they consider to be wants?

• Values
• Attitudes
• Beliefs
• Perceptions

Budgeting effectively in the short term helps people to achieve long-term financial plans by:

• avoiding overspending.
• controlling unplanned events.
• decreasing mandatory expenditure.
• reducing essential expenditure.

The difference between someone’s total assets and their total liabilities is described as their:

• net worth.
• net value
• gross worth
• gross value

Which of the following is least likely to be a medium-term goal that someone aged 24 is budgeting for?

• leave their children an inheritance.
• buy a brand new car in three years’ time.
• pay off their student debt.
• save a deposit for a rental property.

Which of the following events is typically the easiest to budget for?

• Moving house
• Divorce
• Redundancy
• Serious illness

Which of the following items in a financial plan is usually the most flexible?

• Savings account payments
• Minimum credit card payments
• Hire purchase payments.
• Council tax payments