CeFS Unit 1 - Financial Capability for the Immediate and Short Term (FCIS) Specimen Paper C

Roy has five goats and would like ten sheep. James has ten sheep and would like five goats. An exchange can take place because of:

• a coincidence of wants

• a trade balance

• the divisibility of the animals

• the importance of animals

Which of the following terms describes the quantity of goods and services that money can buy?

• Divisibility

• Homogeneity

• Purchasing power

• Scarcity value

In the past, one of the disadvantages of using shells as a medium of exchange was that they:

• could not be exchanged

• had no value

• were not divisible

• were not in demand

All £10 notes issued in England and Wales need to be homogeneous. This means they need to:

• be scarce but sufficient

• be small enough to carry easily

• hold their value over time

• look and feel the same

During which personal life cycle stage is an adult most likely to rely on the state for their well-being?

• Young adult

• Mature adult

• Middle age

• Old age

Joe is 17 years old. Which of the following is most likely to be his largest expenditure currently?

• Buying a house

• Changing mobile phone contract

• Learning to drive

• Travel to a job

The stages in the personal life cycle are affected by socio-economic trends. Which of the following is not socio-economic?

• Demographic

• Economic

• Environmental

• Social

Which of the following is a demographic factor that affects an individual’s life cycle?

• Education

• Gender equality

• Life expectancy

• The welfare state

National Savings & Investments (NS&I) products are guaranteed by:

• HM Treasury

• the Bank of England

• the Financial Conduct Authority (FCA)

• the Prudential Regulation Authority (PRA)

Which of the following customers will directly benefit if interest rates rise?

• Aggie, who has a stocks and shares ISA

• Beryl, who has a life assurance policy

• Rajiv, who has a variable-rate cash ISA

• Toni, who has a two-year fixed-rate bond