Saving & Loans

What type of borrowing allows you to withdraw money from a current account that you do not have?

• Mortgage

• Overdraft

• Hire purchase

• Personal loan

Which type of savings account allows the holder to not be charged income tax on the interest received?

• Deposit and savings accounts

• Premium bonds

• Individual savings accounts (ISA)

• Bonds and gilts

What type of investment involves the shareholder becoming a part owner of a business?

• Shares

• Pensions

• Bonds and gilts

• Premium bonds

What is the main advantage of a credit card?

• Accumulation of debt if not managed wisely

• It is convenient and readily available

• Potential for overspending

• High-interest rates

Which financial institution is responsible for maintaining a healthy level of financial stability for the UK?

• Bank of England

• Banks

• Building societies

• Credit unions

What type of insurance is a legal requirement for any car on the road?

• Travel insurance

• Health insurance

• Home and contents insurance

• Car insurance

What is the main responsibility of pension companies?

• Handling financial transactions and storing money on behalf of members

• Investing money paid in contributions to increase its value

• Selling policies for pet insurance

• Issuing legal tender and controlling the national debt

What type of borrowing is a short-term source of finance used to bridge the gap between the present time and the next wage receipt?

• Personal loan

• Payday loan

• Credit card

• Mortgage

What is the main advantage of individual savings accounts (ISAs)?

• Tax-free growth on interest and dividends

• Chance to win tax-free prizes

• Fixed interest rate

• Tax relief on contributions

What is the main disadvantage of using a credit card?

• Inflation can reduce the spending power of money saved

• High-interest rates

• Risk of losing capital

• Tax-free growth on interest and dividends