LIBF UNIT 3 TOPIC 1

What is the Bank rate?

• The interest rate set by local banks

• The interest rate the Bank of England uses when lending to other banks

• The interest rate for personal loans

• The interest rate for credit cards

What is cash-flow modelling?

• A software program for predicting short-term expenses

• A software program for predicting medium- and long-term financial impacts

• A software program for predicting tax liabilities

• A software program for predicting stock prices

What is a credit card?

• A card that allows purchases and cash withdrawals with interest charges

• A card that only allows cash withdrawals

• A card that only allows online purchases

• A card that only allows in-store purchases

What is essential expenditure?

• Spending on luxury items

• Spending on items required to live

• Spending on entertainment

• Spending on travel

What is financial capability?

• Being able to manage personal finances effectively

• Being able to invest in stocks

• Being able to save for retirement

• Being able to pay taxes

What is fixed interest?

• Paying a variable rate of interest

• Paying the same rate of interest until the end of the term

• Paying interest only on savings

• Paying interest only on loans

What does inflation refer to?

• A decrease in the general price level

• A general rise in prices

• A stable price level

• A decrease in the purchasing power of money

What are investments intended to do?

• Decrease in value over time

• Provide immediate cash flow

• Grow in value over time

• Be used for daily expenses

What is a mortgage?

• A short-term loan for buying a car

• A loan taken out to pay for a property

• A credit card debt

• A personal loan for vacations

What are National Insurance contributions used for?

• Funding private investments

• Funding state pensions and other benefits

• Paying off personal debts

• Buying luxury goods