LIBF DIPFS Unit 3 quiz (SPEC C 1-10)

Much of the blame for the financial crisis of 2007-08 is generally attributed to providers encouraging people to take out:

• expensive loans.

• high levels of credit card debt.

• high-premium products.

• mortgage loans they could not afford.

Which of the following is evidence of a lack of financial sustainability by individuals?

• Changing interest rates.

• Growing numbers of mortgage providers.

• Increase in people switching accounts

• Increasing numbers of property repossessions.

Financial services providers support financial sustainability for all individual customers by:

• increasing credit card limits annually.

• launching complex financial products

• offering high-risk investment products.

• widespread availability of online banking.

Which of the following is not included in a person's financial footprint?

• Credit searches.

• Loan applications.

• Payment arrears.

• Savings deposits.

Which of the following should financial services providers check to ensure that borrowers are able to meet mortgage repayments?

• Affordability.

• Profit margin

• Their deposit.

• Their savings.

In which of the following situations will the state benefit system support an individual's financial sustainability? When someone has:

• been made redundant.

• defaulted on a loan.

• incurred costs for moving house.

• ost money on an investment trust.

Jan is only able to work a couple of hours each day because she is her mother's full-time carer. Which of the following is Jan most likely to be entitled to?

• Benefits cap.

• Part-time allowance.

• Personal Independence Payment.

• Universal Credit.

What has been the main reason that the UK government has delayed individuals taking their basic state pension? Changes in:

• income tax thresholds.

• interest rates.

• life expectancy.

• National Insurance contributions.

Which of the following is an external factor that is likely to affect personal financial decision making?

• A change in the rate of inflation.

• Applying for a better paid job.

• Extended sickness absence from work.

• Values.

Which of the following is an example of a government using monetary policy?

• Decreasing interest rates.

• Decreasing state benefits.

• Increasing income tax.

• Increasing regulation.