Your Personal Finance Quiz (Exam C)

'Bartering' depends upon which of the following to make it work?

• Borrowing.

• Electronics.

• Negotiation.

• Polymer.

Answer explanation

Bartering depends on negotiation to work, as it involves the process of haggling and reaching an agreement on the terms of the exchange.

Which of the following is the most important feature of coins and banknotes which enables change to be provided when an item is purchased?

• colours.

• denominations.

• sizes.

• weights.

Answer explanation

The most important feature of coins and banknotes that enables change to be provided when an item is purchased is denominations, as it indicates the value of the currency.

Mark has two of each UK denomination of banknote in his wallet. How much cash is in his wallet?

• £35.

• £70.

• £85.

• £170.

Answer explanation

Mark has two of each UK banknote denomination, totaling £170 in his wallet (2x£5 + 2x£10 + 2x£20 + 2x£50 + 2x£100 = £170). Therefore, the correct answer is £170.

This month, Zack earned a salary of £900 and received a Universal Credit payment of £100. His monthly expenditure was £850. What is Zack's total monthly income?

• £50.

• £150.

• £900.

• £1,000.

Answer explanation

Zack's total monthly income is £1,000 because he earned £900 from his salary, received £100 from Universal Credit, and spent £850, resulting in a total income of £1,000.

People under the age of 13 cannot work unless they are employed in which of the following professions?

• Acting

• Catering

• Cleaning

• Farming

Answer explanation

People under the age of 13 can work in the profession of Acting. This is the only profession where individuals under 13 are allowed to work legally.

Who out of the following should be paid at least the national minimum wage for the work they do?

• Alan, 15, who works as a babysitter

• Becky, 18, currently unemployed

• Conor, 22, a shop assistant

• Danielle, 24, a delivery driver

Answer explanation

Conor, 22, a shop assistant, should be paid at least the national minimum wage for the work he does.

Julie's current personal tax allowance is £12,500. The basic-rate tax rate is 20%. If Julie's annual salary is £32,500, how much income tax will she pay this year?

• £2,500

• £4,000

• £6,500

• £12,500

Answer explanation

The income tax is calculated as 20% of the amount exceeding the personal tax allowance. Julie's salary exceeds the allowance by £20,000 (£32,500 - £12,500). 20% of £20,000 is £4,000.

Which of the following pieces of information shown on typical payslips for an individual will never change?

• National Insurance number

• Tax code

• Tax paid to date

• Total deductions

Answer explanation

The National Insurance number is a unique identifier for an individual and will never change, unlike tax code, tax paid to date, and total deductions which can vary based on circumstances.

Selling an unwanted item is one way to:

• decrease expenditure.

• decrease tax bills.

• increase income.

• increase the item's original value.

Answer explanation

Selling an unwanted item can increase income by receiving money in exchange for the item, thus adding to the total amount of money earned.

Tilly has a very pretty gold necklace she wants to sell to raise money for a holiday. Which of the following is most likely to pay the highest price for it?

• A cash converter on her high street.

• A friend, who has always liked it.

• A local charity shop.

• A specialist gold buying business.

Answer explanation

A friend, who has always liked it, is most likely to pay the highest price as they value the necklace for sentimental reasons.