Unit 3 Personal Finance Financial Quiz 1

What is the primary function of a debit card?

• To issue loans

• To store cash

• To make payments with funds directly deducted from a current account

• To earn interest on savings

Which type of card allows consumers to delay payments for goods and services?

• Debit card

• Credit card

• Store card

• Pre-paid card

What is the main feature of a contactless card?

• Requires a PIN for every transaction

• Allows transactions by waving the card over a reader

• Only works for online purchases

• Can only be used at ATMs

Which type of account is typically held by someone with no credit history?

• Standard

• Packaged, premium

• Basic

• Student

What is the purpose of a pre-paid card?

• To earn interest

• To store money for future use

• To upload money and make transactions until the balance is reduced

• To withdraw cash from an ATM

What is the main benefit of a packaged, premium account?

• No fees for any transactions

• Offers extra incentives like discounted insurance

• Unlimited cash withdrawals

• Higher interest rates on savings

What is a credit card used for?

• To pay for goods or services using a card with a statement issued at the end of each month.

• To save money in a tax-free account.

• To invest in government bonds.

• To insure a car against theft.

What is an Individual Savings Account (ISA)?

• A tax-free way to save or invest.

• A government scheme for cash prizes.

• A policy to pay a lump sum upon death.

• A type of insurance for pets.

What are premium bonds?

• A type of insurance for travel.

• A government scheme that allows individuals to save in bonds for cash prizes.

• A long-term savings plan for retirement.

• A short-term loan against personal assets.

What is the primary function of a bank branch?

• To use mobile devices for transactions

• To provide online banking services

• A physical place where customers visit to carry out transactions

• To offer telephone banking services