BTEC Business Unit 3 - Section A: Personal Finance MCQ Test 8

Which of the following payment methods is MOST likely to lead to unmanageable debt?

• Debit card 

• Charge card 

• Credit card 

• Prepaid card 

Which of the following is NOT a type of current account? 

• Premium 

• Standard 

• Everyday 

• Basic

Which of the following does NOT provide information, guidance or advice to individuals? 

• Debt counsellor 

• Payday Loan Company 

• Citizens Advice

• Price Comparison Websites

The MAIN risk associated with saving money in a bank or building society is:

• Inflation can reduce the spending power of savings in the future 

• Interest on savings is always taxed 

• There is no guarantee of dividends if the FTSE falls 

• You always have to give notice order to withdraw funds from savings accounts 

Which of the following is NOT a disadvantage of a mortgage as a method of borrowing? 

• Failure to keep up with repayments may lead to repossession of the property being purchased 

• Penalties are often incurred if early repayments are made 

• If a tracker mortgage is used, interest rates may vary 

• A mortgage allows you to build equity in your home over time 

What kind of current account would come with no overdraft, no perks and no debit card? 

• Student 

• Simple 

• Basic 

• Elementary 

Which of the following forms of borrowing is the LEAST short term? 

• Bank loan 

• Overdraft  

• Payday loan 

• Mortgage

Which of the following is an independent organisation with a remit to regulate the actions of providers of financial services, funded by membership fees charged to financial service providers? 

• FCA

• FSCS 

• OFT 

• Citizens Advice 

Which of the following popular high street organisations offers a range of services and account types, paying interest on credit balances on most types of accounts? 

• Insurance companies 

• Building societies 

• Pension companies 

• Credit unions 

What method of saving or investment encourages an individual to save throughout their working life for retirement? 

• Premium bonds 

• Pensions 

• Government gilts 

• ISA