LIBF UNIT 3 TOPIC 4 (VOL 2)

What does budget balance refer to?

• Total income minus total expenditure

• The amount of money saved each month

• The difference between expected and actual income

• A plan for future financial goals

What is a budget deficit?

• A situation in which outgoings exceed income

• A surplus of income over expenses

• A balanced financial situation

• A plan for unexpected expenses

What is a budget surplus?

• A sum of money available once all essential expenditure has been made

• The total amount of income received

• The difference between income and savings

• A plan for future investments

What does budget variance measure?

• The difference between expected and actual figures in income and expenditure

• The total amount of money saved

• The ratio of income to expenses

• The amount of money spent on discretionary items

What is a contingency plan?

• A plan to deal with unexpected changes in income or expenditure

• A method of saving for future expenses

• A summary of past financial transactions

• A list of all debts and liabilities

What is the envelope budgeting method?

• A method where money is set aside for a specific purpose in an envelope

• A plan for unexpected expenses

• A summary of past financial transactions

• A list of all debts and liabilities

What are interlocking time periods?

• Overlapping time periods for short-, medium-, and long-term budgets

• A method of saving money for future expenses

• A summary of past financial transactions

• A list of all debts and liabilities

What is long-term financial planning?

• Financial planning for a period of more than ten years

• A method of saving money for future expenses

• A summary of past financial transactions

• A list of all debts and liabilities

What is the typical duration for medium-term financial planning?

• Up to one year

• Up to five years

• Up to ten years

• Up to twenty years

What does remortgage mean?

• Selling a house

• Buying a new property

• Replacing an existing mortgage with a new one

• Renting a property