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Unit 3 Personal and Business Finance A

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Give a feature of a premium account

a)

Withdraw more money than usual

b)

Free Holidays

c)

Exclusive rewards

d)

Exclusive Premium Branch

2.

Describe the role of the Financial Ombudsman Service

a)

Help settle disputes between consumers

b)

Help guide your finance

c)

Help organise your money

3.

Benefits of a pre-paid card

a)

Can't go into debt

b)

Pay before hand

c)

Buy now pay later available

d)

Requires no credit check

4.

Which is not a function of money

a)

Legal Tender

b)

Means of exchange

c)

Unit of account

d)

Measure of a commodity

5.

In which life stage may a student loan be most important?

a)

Childhood

b)

Adolescence

c)

Young Adult

d)

Middle Age

6.

In which life stage will you most likely be making regular mortgage payments?

a)

Childhood

b)

Adolescence

c)

Young Adult

d)

Middle Age

7.

In which life stage will you need encouragement to start saving money?

a)

Childhood

b)

Adolescence

c)

Young Adult

d)

Middle Age

8.

Which of these is not a common principle of planning personal finance?

a)

Generate income and savings

b)

Counter the effects of inflation

c)

Maintain a good credit rating

d)

Avoid solvency

9.

'Payment is transferred directly from one bank account to another' describes which method of payment

a)

Electronic Transfer

b)

Credit Card

c)

Direct Debit

d)

Standing Order

10.

'Issued by financial institutions allowing customers to delay payments for goods and services' describes which method of payment

a)

Electronic Transfer

b)

Credit Card

c)

Direct Debit

d)

Standing Order

11.

'An agreement made with a bank to transfer a fixed sum of money to a third part account on a set date and regular basis' describes which method of payment

a)

Electronic Transfer

b)

Credit Card

c)

Direct Debit

d)

Standing Order

12.

'An agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods and services each month' describes which method of payment

a)

Electronic Transfer

b)

Credit Card

c)

Direct Debit

d)

Standing Order

13.

What is an advantage of an overdraft

a)

You can use money you do not have

b)

It has a high interest rate

c)

You can have it posted

d)

You earn interest on the balance

14.

Which current account is most appropriate for someone with a low credit rating?

a)

Standard

b)

Packaged, premium

c)

Basic

d)

Student

15.

Which current account is most appropriate for receiving regular payments and bills?

a)

Standard

b)

Packaged, premium

c)

Basic

d)

Student

16.

Which is not a type of borrowing

a)

Mortgage

b)

Debit Card

c)

Payday Loan

d)

Credit Card

17.

Why should you plan expenditure?

a)

Payback loans

b)

Control pension

c)

To control costs

d)

Pay mortgage

18.

Which is not a feature of a current account

a)

An overdraft limit

b)

Rate of interest paid on positive balances

c)

Standing orders automatically created

d)

Charges on unauthorised overdrafts

19.

Which of the following is a type of saving and investment

a)

Credit Cards

b)

Premium Bonds

c)

Payday Loans

d)

Bit Coin

20.

Which is not a type of saving and investment

a)

Shares

b)

ISA

c)

Deposit and savings account

d)

Personal Loan

21.

Which of the following is a 'reward' of saving money

a)

Can be exciting

b)

Interest payments

c)

No guarantee of return

d)

inflation can reduce the spending power of money saved

22.

Which type of insurance is a legal requirement?

a)

Car

b)

Travel

c)

Pet

d)

Home

23.

Which is not a type of insurance

a)

Health

b)

Home and contents

c)

Pet

d)

Job

24.

Which type of borrowing has the highest interest rate?

a)

Loan

b)

Overdraft

c)

Mortgage

d)

Payday Loan

25.

'Convenient as can be used at any time and place' is an advantage of which method of payment

a)

Store Card

b)

Contactless Card

c)

Mobile Banking

d)

Pre-paid Card

26.

'A system that allows the transfer of payments directly from one bank account to another' describes which method of payment

a)

Mobile Banking

b)

BACS

c)

Store Card

d)

Contactless Card

27.

'Often only accepted for relatively small transactions' is a disadvantage of which method of payment?

a)

Pre-paid Card

b)

Store Card

c)

Contactless Card

d)

Charge Card

28.

'Time delay of the transaction' is a disadvantage of which method of payment?

a)

Cheque

b)

Debit Card

c)

Cash

d)

BACS

29.

'An easy way to make regular payments that vary in amount i.e. utility bills' is an advantage of which method of payment?

a)

Standing Order

b)

Direct Debit

c)

Cheque

d)

Electronic Transfer

30.

'Allows you to use an item immediately but pay for it in installments' is a description of which method of payment

a)

Payday Loan

b)

Credit Card

c)

Hire Purchase

d)

Personal Loan