Personal Finance Quiz 1

Which of the following is issued by a bank allowing customers to pay for goods directly from a current account? 

• Credit card 

• Gift card 

   

• Charge card 

• Debit card

Which of the following is NOT a type of borrowing? 

 

  

 

• Overdraft

• Leasing

• Hire Purchase

• Mortgage

Which of the following would be considered as the MOST risky form of savings or investment? 

• Buying shares in a plc 

• Putting saving in an ISA 

   

• Buying government gilts 

• Buying premium bonds

What is the FCA an abbreviation of? 

 

• Fair Conduct Association

• Financial Compensation Association 

• Financial Conduct Authority 

• Financial Compensation Authority 

Which of the following would be MOST suitable to fund the purchase of a high price item such as a car or to make home improvements? 

• Mortgage 

   

• Bank overdraft 

• Bank loan 

• Payday loan

What does the abbreviation CHAPS stand for? 

•  

   

   Clearing House Automated Payment System 

• Clearing House Automatic Payment System 

• Credit House Automated Payment System 

   

• Credit House Automatic Payment System

In which life stage are mortgage payments MOST likely to stop or become lower? 

 

 

 

• Old age 

• Young adult

• Middle age 

• Adolescence 

Which of the following is a government organisation set up to offer free and impartial financial advice in the UK? 

• Citizens Advice 

   

• Money Advice Service 

• Office of Fair Trading 

• Financial Conduct Authority

Which of the statements below does NOT apply to credit cards as a means of payment and/or borrowing? 

• Interest is charged on balances not paid off within a month 

• Credit will be limited 

• Penalties are charged for late payment 

• Bonuses are lost if you use it too frequently 

If debts are not paid or not paid on time, this will affect your credit rating. A poor credit rating will affect your ability to: 

• Borrow in the future 

   

• Get a job 

• Get a wife or husband 

• Get a basic bank account in the future