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WorksheetsFinance Unit 2
Total questions: 38
Worksheet time: 38mins
For which of the following can an ATM not be used?
Changing your address.
Changing your PIN.
Checking your balance
Printing a statement.
What would a gas company use to take a payment from a customer's bank account each month?
A direct debit.
A standing order.
An automated sweep.
An express transfer.
Which of the following is an advantage of using internet banking to manage your money?
Internet banking enables you to:
Get a better credit score.
Have access to your account 24 hours a day.
Make purchases on the internet.
Stop debit card payments.
Which of the following will provide the most useful information to help someone manage their money?
Bank statement.
Bills.
Cheque book.
Payslips.
Which of the following does not appear on the front of a debit card?
Cardholder's name.
Current account number.
Expiry date.
Security number.
Barbara has a credit card, which she uses frequently. How often will Barbara be required to make payments to the credit card issuer?
Weekly.
Fortnightly.
Monthly
Quarterly
A debit card cannot be used to:
Make online payments.
Make payments in shops.
Obtain cashback in shops.
Obtain credit on purchases.
A credit card....
Cannot be used to make payments.
Cannot be used to withdraw cash.
Is a way of borrowing money.
Is linked to a current account.
Which of the following applies only to overdrafts?
AER
CPI
EAR
RPI
Frank buys a car using £3,000 finance, over five years, at 8% APR per annum.
When the finance is repaid, how much in total will Frank have paid back?
£3,000.
£3,240.
£4,200.
£5,400
What is the most likely reason for paying for something in advance?
The:
bank needs it.
buyer chooses to pay this way.
credit card company requires it.
seller insists on it.
Which of the following statements about insurance is correct?
All risks are avoided.
The insurance company takes the risk.
The insured person has no risk at all.
There is usually no risk.
Charlie has been given his uncle's old Ford Fiesta car. What is the legal minimum insurance that he will be required to take out on the car?
Fully comprehensive.
Theft only.
Third-party, fire and theft.
Third-party only.
Legally, people are allowed to insure their spouse against death. This is due to the legal principle of:
agency.
indemnity.
insurable interest.
utmost good faith.
Checking current bank account statements regularly is a good way of ensuring that:
interest rates have not changed.
no-one has fraudulently accessed your account.
you are always in credit.
you are aware of all special offers available.
What do the letters ‘O/D’ stand for on a bank statement?
On debit.
On demand.
Overdrawn.
Overdue.
Which of the following is not an example of an expenditure?
Interest on savings.
Mobile phone bill.
Rent paid
Road tax.
In respect of financial services, what kind of help is someone most likely to provide if they work at a Citizens Advice bureau?
Billing queries.
Dealing with complaints.
Debt counselling.
Investment advice.
What is a direct debit?
A method of making regular payments.
A transaction that makes you overdrawn.
A type of bank card.
An instant transfer of money.
Which of the following is the customer provided with when they apply to set up internet banking for the first time?
Account number and sort code.
Branch address and telephone number.
Customer identification name and password.
Special questions with the answers.
Which of the following is used to calculate the cost of borrowing money?
AER.
APR.
RPI.
VAT.
Why is motor insurance a legal requirement for drivers?
ensure your car is properly maintained.
entitle you to roadside assistance if you break down.
pay for the building of new roads.
protect the interests of others.
Which of the following shows details of transactions into, and out of, a bank account?
A bank...
Deposit
Note
Statement
Receipt
What is the main difference between a debit card and a credit card? Only a debit card:
can be used to obtain cash from an ATM.
can be used to pay for items in shops.
is a method of paying for goods online.
is linked directly to a current account.
Bill and Maggie are just about to buy a new house. They must pay the money for it to their solicitor by lunchtime tomorrow, so they can move in tomorrow afternoon.
Which of the following is the best way for them to make the payment?
Bacs.
Cash.
CHAPS.
Cheque.
Paul is worried about his finances. He is spending more than he earns and his debts are getting out of control.
From which of the following is it the most appropriate for Paul to seek impartial debt counselling?
A restricted financial adviser.
A solicitor.
An independent financial adviser.
Citizens Advice.
Which of the following cannot be used to get a list of transactions on your current account?
ATM
BACs
Internet Banking
Statement
Typically, borrowing on a credit card is free, as long as the whole amount is paid back within a maximum of how many days?
30 - 39 days.
40 - 49 days.
50 - 59 days.
60 - 69 days.
What does 'APR' stand for?
Actual percentage rate.
Annual percentage rate.
Approximate percentage rate.
Arranged percentage rate.
What is the main purpose of insurance?
be able to get new products for free when the old ones wear out.
earn a regular income.
offer credit to people whom banks consider to be high risk.
reduce the financial effects of loss.
Which of the following is most likely to be a secured loan?
Credit card.
Mortgage
Overdraft
Store Card
The money that a person has to pay for insurance cover is known as which of the following?
Assurance.
Dividend.
Interest.
Premium
Sophie, aged 17, is a student. She lives with her parents and works weekends at her local garden centre.
She applies for a car loan, which is refused by the bank. This is most likely because she:
is a student.
is too young to borrow.
lives with her parents.
only has a part-time job.
What is the longest number on a debit card?
Account number.
Card expiry date
Card number
Card security number.
Complex banking problems are most difficult to solve when using which of the following channels?
Branch banking.
Face-to-face.
Internet banking.
Telephone banking.
In addition to the amount of transactions, a bank statement will also always show the:
date that the transaction was processed.
location of the transaction.
precise time of the transaction.
receipt provided during the transaction.
Isma is only allowed to advise customers on her employer’s financial products. This means that Isma is which type of financial adviser?
Chartered.
Independent.
Multi-tied.
Restricted.
For Dino to complete a card transaction for £49.99 in a shop, he will be required to type in which of the following?
bank account number.
card verification code.
customer identification number.
personal identification number (PIN).
