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WorksheetsBTEC Business Unit 3 - Section A: Personal Finance MCQ Test 8
Total questions: 15
Worksheet time: 8mins
Which of the following payment methods is MOST likely to lead to unmanageable debt?
Debit card
Charge card
Credit card
Prepaid card
Which of the following is NOT a type of current account?
Premium
Standard
Everyday
Basic
Which of the following does NOT provide information, guidance or advice to individuals?
Debt counsellor
Payday Loan Company
Citizens Advice
Price Comparison Websites
The MAIN risk associated with saving money in a bank or building society is:
Inflation can reduce the spending power of savings in the future
Interest on savings is always taxed
There is no guarantee of dividends if the FTSE falls
You always have to give notice order to withdraw funds from savings accounts
Which of the following is NOT a disadvantage of a mortgage as a method of borrowing?
Failure to keep up with repayments may lead to repossession of the property being purchased
Penalties are often incurred if early repayments are made
If a tracker mortgage is used, interest rates may vary
A mortgage allows you to build equity in your home over time
What kind of current account would come with no overdraft, no perks and no debit card?
Student
Simple
Basic
Elementary
Which of the following forms of borrowing is the LEAST short term?
Bank loan
Overdraft
Payday loan
Mortgage
Which of the following is an independent organisation with a remit to regulate the actions of providers of financial services, funded by membership fees charged to financial service providers?
FCA
FSCS
OFT
Citizens Advice
Which of the following popular high street organisations offers a range of services and account types, paying interest on credit balances on most types of accounts?
Insurance companies
Building societies
Pension companies
Credit unions
What method of saving or investment encourages an individual to save throughout their working life for retirement?
Premium bonds
Pensions
Government gilts
ISA
Which of the following is funded by compulsory fees charged to all regulated financial institutions and becomes involved in unresolved consumer disputes with financial institutions?
Money Advice Service
Citizens Advice
Financial Ombudsman Service
Financial Services Compensation Scheme
Which of the following is a government organisation that was established to regulate all markets, including financial markets?
FOS
OFT
FSCS
FCA
Which of the following is NOT a DISADVANTAGE of using price comparison websites?
There is no guarantee they are 100% up to date
There is no guarantee they are 100% unbiased
There is no guarantee that all providers are listed on the websites
There is no guarantee someone will answer the phone when you call
Which of the following is likely to have the HIGHEST annual percentage rate (APR) in terms of interest?
Bank loan
Payday loan
Hire purchase agreement
Credit card
Which of the following is NOT an electronic method of payment?
BACS
Direct debit
Cheque
CHAPS
