CEFS Spec B 11-20

11. Adele is aged 17. Which of the following accounts could she open for herself?

• A Cash ISA only.

• B Stocks and shares ISA only.

• C Stocks and shares ISA and cash ISA.

• D She is not eligible for an ISA.

12. In the current tax year, Marius will receive £200 gross interest on his savings account. How much will be credited to his account?

• A £120.

• B £160.

• C £180.

• D £200.

13. Paul is aged 20 and wishes to borrow using an overdraft. Which type of bank account must he have?

• A Basic

• B Current.

• C Savings.

• D Youth.

14. Which of the following transactions is most likely to require the card verification value (CVV) on a credit card?

• A Buying groceries at a supermarket.

• B Buying travel insurance at a travel agent.

• C Paying for an item in a shop abroad.

• D Paying for music downloads online.

15. Which of the following forms of borrowing usually has the lowest interest rate?

• A Authorised overdraft.

• B Credit card.

• C Personal loan.

• D Store card.

16. Most UK banks are owned by:

• A all account holders.

• B the government.

• C their members.

• D their shareholders.

17. Which of the following is not an example of a ‘common bond’ that may be required for members to be part of a credit union?

• A All have a savings account.

• B Belong to a specific organisation.

• C Live in the same area.

• D Work for a specific employer.

18. Derek and Connie have a joint savings account at a building society with a balance of £190,000. Under normal circumstances, how much of their savings would be covered by the Financial Services Compensation Scheme (FSCS) if the building society became insolvent?

• A £50,000.

• B £85,000.

• C £170,000.

• D £190,000.

19. Malik and Nia are married, both have personal savings accounts with the same provider and have saved £50,000 each. If the provider goes bust, how much, if any, will the Financial Services Compensation Scheme repay Malik and Nia altogether?

• A £50,000.

• B £85,000.

• C £100,000.

• D £170,000.

20. Which of the following statements about the Financial Ombudsman Service (FOS) is true?

• A Consumers are charged for the service if their complaint is rejected by the FOS.

• B Decisions made by the FOS are legally binding on the firm being complained about.

• C The maximum compensation award that can be made is £100,000.

• D The service is funded directly by the government and through private sponsorship