WorksheetsQuiz on Bonds and Credit Union Savings Accounts
Total questions: 10
Worksheet time: 5mins
What is the typical minimum investment amount for most bonds?
£100
£500
£1,000
£50,000
Why do bonds offer higher interest rates compared to instant access accounts?
Because they have no penalties
Because they are government-backed
Because the saver has to tie their money up for the term of the bond
Because they are riskier
What is an 'issue period' in the context of bonds?
The period when the bond is traded on the stock market
The time when interest is paid
The time when the bond matures
The period during which savers can make their investment
What happens if a saver wants to close their bond account during the term?
They can close it without any penalty
They will be subject to a penalty of up to one year’s interest
They will lose all their money
They can only withdraw a limited amount
What is a feature of some bond accounts that allow limited withdrawals?
Lower rates
No minimum investment
No penalties
Higher interest rates
How do Sharia-compliant accounts generate returns for savers?
By paying interest
By pooling savers’ money and engaging in profit-making activities
By investing in stocks
By trading bonds
How are profits from Sharia-compliant accounts taxed?
They are not taxed
They are taxed only if withdrawn
They are taxed at a higher rate
They are taxed in the same way as deposit accounts
What links members of a credit union?
Living in the same area
Having the same income level
Having the same credit score
Owning the same type of property
How do credit unions typically share their profits with members?
By paying an annual dividend for each share held
By reducing loan interest rates
By offering free financial advice
By increasing the value of shares
What is the maximum return allowed by law for credit union dividends?
3%
5%
8%
10%
