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

A local exchange trading scheme (LETS) is a way of accessing goods and services: A at a lower cost than the market price. B by borrowing money from the community. C using electronic payments. D without the need for money.

• at a lower cost than the market price.

• by borrowing money from the community.

• using electronic payments.

• without the need for money.

Which of the following are known as ‘cash’? A Coins only. B Notes only. C Notes and coins only. D Notes, coins, and bank account balances.

• Coins only.

• Notes only.

• Notes and coins only.

• Notes, coins, and bank account balances.

All coins and banknotes of a certain denomination need to be homogeneous. Which of the following is the best definition of homogeneous? A They are accepted in shops. B They have security features. C They maintain the same value. D They need to look and feel the same.

• They are accepted in shops.

• They have security features.

• They maintain the same value.

• They need to look and feel the same.

Which of the following is considered to be money in the UK? A A charge card. B A cheque. C A debit card. D An electronic balance.

• A charge card.

• A cheque.

• A debit card.

• An electronic balance.

Kevin is aged 57. At which stage of the typical personal life cycle is he? A Mature adult. B Middle age. C Late middle age. D Old age.

• Mature adult.

• Middle age.

• Late middle age.

• Old age.

In which stage of the personal life cycle is someone less likely to need to borrow? A Young adult. B Mature adult. C Middle age. D Old age.

• Young adult.

• Mature adult.

• Middle age.

• Old age.

Which of the following represents an emotional risk? A Failing to repay a debt. B Going bungee jumping. C Investing on the stock market. D Trusting your family.

• Failing to repay a debt.

• Going bungee jumping.

• Investing on the stock market.

• Trusting your family.

On average, people in the UK are living longer than previously. This is an example of: A a demographic change. B a social benefit. C an economic trend. D an unexpected influence.

• a demographic change.

• a social benefit.

• an economic trend.

• an unexpected influence.

Samira is receiving a lower rate of interest on her savings account than Jodie. This is most likely to be because Samira: A has a lower account balance than Jodie. B has an online account but Jodie doesn’t. C is five years older than Jodie. D is self-employed and Jodie is employed.

• has a lower account balance than Jodie.

• has an online account but Jodie doesn’t.

• is five years older than Jodie.

• is self-employed and Jodie is employed.

When choosing a savings product, which of the following is not a relevant factor? A How often withdrawals can be made. B How the account is operated. C Regular monthly fees. D The rate of return.

• How often withdrawals can be made.

• How the account is operated.

• Regular monthly fees.

• The rate of return.