Unit 3 LA B Quiz

What is the responsibility of the Bank of England?

• Selling policies to individuals for retirement planning

• Offering short term source of finance at high interest rates

• Handling financial transactions and storing money

• Issuing legal tender and setting interest rates

What is a limitation of the protection offered by banks on savings?

• Protection is unlimited

• Protection is only up to the value of £50,000

• Protection is only up to the value of £85,000

• Protection is only up to the value of £100,000

What is an advantage of using a credit union for financial transactions?

• Savings are only protected up to the value of £75,000

• May lack the business drive of a commercial bank

• Owned by members & therefore costs can be kept down allowing for higher interest payments

• May lack the business drive of a commercial bank

What might be a limitation of saving money with National Savings & Investments?

• Guaranteed safety of all savings with no maximum limit due to government backing

• Extremely high interest rates

• Limited accessibility due to absence on high streets

• Notice period often required for withdrawals

What is a disadvantage of using insurance companies for protection against financial risk?

• Insurance companies cover all types of risks

• Insurance premiums can be expensive

• Insurance companies always provide financial security

• Insurance companies can predict all financial risks

What is a significant advantage of interacting with clients via online banking?

• Traditional method that many clients will feel comfortable with

• Increased risk due to cyber crime

• •Not suitable for cash withdrawals

• Accessible 24/7

What is a disadvantage of using telephone banking for financial transactions?

• Convenient, especially to access basic functions such as checking a balance

• Easy to access 24/7

• No additional charges

• Full access may be limited to set hours

What is a disadvantage of using price comparison websites for financial decisions?

• They may not include all available options

• They are difficult to use

• They are not available 24/7

• They provide inaccurate information

What is a disadvantage of using the Citizens Advice for financial guidance?

• Trained volunteers are not necessarily professionals in financial issues & therefore knowledge may be limited

• Free service

• Advice offered at physical centres as well as online & via email

• Advice is offered by professionals in the field

What is an advantage of using debt counsellors for financial advice?

• Advice will focus just on debt management rather than the whole package of financial concerns

• Services offered are regulated by the FCA & FOS

• Set up & handling fees are charged for the service

• Advice is offered by a professional who specialises in debt management