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Unit 3 Finance LO A-C

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

Which of the following is NOT an electronic method of payment? 

a)

BACS

b)

Direct debit 

c)

Cheque

d)

CHAPS

2.

Which of the following is an independent organisation that regulates the actions of providers of financial services, funded by membership fees charged to financial service providers? 

a)

FCA

b)

FSCS 

c)

OFT 

d)

Citizens Advice 

3.

The MAIN risk associated with saving money in a bank or building society is:

a)

Inflation can reduce the spending power of savings in the future 

b)

Interest on savings is always taxed 

c)

There is no guarantee of dividends if the FTSE falls 

d)

You always have to give notice order to withdraw funds from savings accounts 

4.

A DISADVANTAGE of using payday loans as compared to bank loans is:

a)

Payday loans have to be paid back

b)

A payday loan will not be given if you have a poor credit rating

c)

The interest on a payday loan is higher than on a bank loan

d)

A payday loan is only available for 3 months

5.

What kind of current account would an individual with a poor credit rating be MOST likely to be offered? 

a)

Standard 

b)

Simple  

c)

Basic 

d)

Ordinary

6.

Which organisation is appointed by the government to represent the interests of the consumer in disputes with financial service providers?

a)

OFT 

b)

FCA 

c)

FOS 

d)

FSCS

7.

What do personal attitudes, life stages, culture and external influences affect?

a)

The role of finance

b)

The role of money

c)

The role of a financial advisor

d)

The role of a credit union

8.

Which of the following sources of finance would be MOST suitable for a one-off or infrequent purchase, e.g. a TV or laptop?

a)

Bank loan

b)

Leasing

c)

Hire purchase

d)

Mortgage

9.

Which of the following is NOT a method of saving or investment? 

a)

Premium bonds

b)

Shares

c)

Current account

d)

Gilts

10.

Which of the following is NOT a function of money?

a)

Interest rates 

b)

Means of exchange 

c)

Legal tender 

d)

Unit of account 

11.

Revenue income is loans, shares, owners capital, mortgages and debentures?

a)

True

b)

False

12.

In a small business - paying wages, ordering new stock, paying bills, balancing inflows with outflows is the responsibility of whom?

a)

A competitor's accountant

b)

Your mum

c)

An investor

d)

The manager responsible for the business

13.

Which one of the options below is NOT an example of a financial transaction.

a)

Taking some clients out for a meal and claiming the expenses

b)

Taking cash or contactless payments for goods or services offered

c)

Writing a letter of complaint

d)

Purchasing a company vehicle

14.

Which financial institution is owned by its members?

a)

financial service company

b)

savings and loan association

c)

commercial bank

d)

credit union

15.

An IVA & Bankruptcy are not the same.

a)

True

b)

False

16.

A charity run organisation that provides advice on a range of financial and non financial matters...

a)

Independent Financial Advisor

b)

Debt Counsellor

c)

Citizens Advice

d)

Bankruptcy

17.

Which of these is a drawback of banking in branch?

a)

Takes longer and you may need transport

b)

24/7 Access and convenient

18.

The Bank of England sets interest rates for the country

a)

True

b)

False