Unit 3 Topic 1 Quiz

What was the economic condition in the UK from 1997 until 2008?

• High unemployment

• Low unemployment

• Economic recession

• High inflation

Planning for unforeseen events is known as:

• Flexible planning

• Cash flow planning

• Contingency planning

• Buffer planning

Which of the following lending products will charge the highest interest rate?

• A personal loan

• A payday loan

• A credit card

• An overdraft

What should all pupils leave school with according to the new curriculum?

• Advanced scientific knowledge

• Basic level of financial literacy

• Proficiency in foreign languages

• Artistic skills

The main providers of current accounts are:

• Credit unions

• Banks and building societies

• The government

• Private investment firms

What tool is recommended for planning spending?

• Annual reports

• Weekly or monthly budgets

• Daily expense tracking

• Yearly forecasts

What is the stated objective of financial capability education?

• To increase national debt

• To encourage individuals to take out more financial products

• To help manage personal and household debt

• To encourage spending

Why is it important to pay into a pension scheme?

• To ensure adequate income in retirement

• To avoid paying taxes

• To increase current income

• To buy a new car

What steps can individuals take if expenditure is more than predicted income?

• Reduce planned expenditure, increase income, or use an overdraft

• Ignore the deficit

• Increase spending

• Avoid working

What is the main purpose of financial planning?

• To predict future income accurately

• To plan future expenditure and decide how it will be financed

• To avoid all forms of borrowing

• To ensure all savings are invested in stocks