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Financial Regulation and Consumer Protection Quiz

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

What is the main role of the Financial Conduct Authority (FCA)?

a)

To regulate financial markets and protect consumers

b)

To provide insurance to consumers

c)

To offer loans to businesses

d)

To set interest rates for banks

2.

What does the Financial Ombudsman Service (FOS) help consumers with?

a)

Resolving disputes between consumers and financial businesses

b)

Providing investment advice

c)

Issuing credit cards

d)

Setting up savings accounts

3.

Why is the Financial Services Compensation Scheme (FSCS) important?

a)

It protects consumers if financial firms fail

b)

It sets interest rates for loans

c)

It regulates advertising for financial products

d)

It provides tax advice to consumers

4.

What is the purpose of the Consumer Credit Act?

a)

To regulate consumer credit and protect borrowers

b)

To provide insurance for consumers

c)

To set up pension schemes

d)

To manage stock market investments

5.

What does APR measure?

a)

The annual cost of borrowing including fees and interest

b)

The total amount of savings in a year

c)

The number of credit cards issued annually

d)

The average price of retail goods

6.

What should financial organisations provide before a customer signs a contract?

a)

Hidden fees

b)

Clear information about costs and terms

c)

Only verbal agreements

d)

No information

7.

Which organisation handles complaints when a bank cannot resolve them?

a)

HMRC

b)

Financial Conduct Authority

c)

Financial Ombudsman Service

d)

Credit Reference Agencies

8.

Which organisation handles complaints when a bank cannot resolve them?

a)

HMRC

b)

Financial Conduct Authority

c)

Financial Ombudsman Service

d)

Credit Reference Agencies

9.

What is an example of unfair trading?

a)

Giving clear and accurate advice

b)

Misleading information in adverts

c)

Allowing a cooling-off period

d)

Providing written contracts

10.

Why is consumer protection important in finance?

a)

To make borrowing more expensive

b)

To ensure firms can hide risks

c)

To prevent consumers being misled or exploited

d)

To increase pressure selling

11.

Which of the following is NOT a responsibility of financial organisations before a customer signs a contract?

a)

Providing clear information about costs and terms

b)

Giving only verbal agreements

c)

Ensuring customers understand the terms

d)

Disclosing all fees