Unit 2 Mock 1-Spec A

A sensible MINIMUM amount for an emergency fund for most families would be 3-6 months....

• ..discretionary income

• ..disposable income

• .. essential income

• .. gross income

Collective funds are TYPICALLY offered by..

• .. building societies

• .. insurance companies

• .. investment companies

• .. mortgage brokers

For a young adult, which of the following would TYPICALLY be classed as a long term financial plan? Saving for..

• .. a holiday in 12 months time

• .. a new car

• .. college

• .. retirement

An example of unearned income is..

• .. bonuses

• .. overtime

• .. rental income

• .. sales commission

An increase in interest rates could lead to a budget deficit for an individual with which of the following financial products?

• Fixed rate mortgage

• Fixed rate savings

• Variable rate mortgage

• Variable rate savings

If the pound weakens against the Euro then..

• .. exports from the UK to the Eurozone become cheaper

• .. fewer tourists will visit the UK form Eurozone countries

• .. imports from the Eurozone to the UK become cheaper

• .. interest rates in the UK will rise

Increased company profits GENERALLY lead to..

• .. higher levels of unemployment

• .. lower government tax receipts

• .. lower personal income

• .. reduced government borrowing

Which of the following is a way to pay regular bills that vary in amount?

• BACs

• Direct Debit

• Faster Payments

• Standing Order

Which of the following is a correct definition of 'value for money'?

• a budget product

• a low cost brand

• the cheapest product

• the right product at the right price

Which of the following taxes is included in the price of many of the goods we buy?

• Capital gains tax

• Corporation tax

• Income tax

• Value added tax