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WorksheetsTopic A and B 60 Multiple Choice Questions
Total questions: 60
Worksheet time: 33mins
Which are functions of money?
Store of value
Unit of account
Legal tender
Means of exchange
Which are types of financial institutions for saving?
Bank
Building society
Credit union
Insurance broker
Which are features of premium bonds?
Government-backed scheme
Chance to win tax-free prizes
Guaranteed interest income
Can be cashed anytime
Which are benefits of pensions?
Regular savings for retirement
Employer contributions
Guaranteed high returns
Tax advantages
Which are drawbacks of pensions?
Ongoing payments reduce disposable income
Final value uncertain
Always easy to transfer between jobs
May require multiple policies
Which are benefits of shares?
Potential for capital growth
Dividends
Guaranteed profit
Ownership perks
Which are drawbacks of shares?
Value can fall
No guaranteed dividends
Always risk-free
High volatility
Which are types of current accounts?
Basic
Student
Standard
Mortgage
Which are features of packaged accounts?
Monthly fee
Includes travel insurance
Includes mobile phone insurance
Always free
Which are alternatives to branch banking?
Telephone banking
Online banking
Mobile banking
Postal banking
Which are drawbacks of postal banking?
Slow process
Cannot send cash
Risk of loss
Instant transactions
Which are risks of investment?
Loss of capital
No guaranteed return
Always safe
High volatility
Which are rewards of investment?
Potential high returns
More exciting than saving
Guaranteed income
Tax-free interest
Which are roles of the Bank of England?
Sets interest rates
Issues legal tender
Provides consumer loans
Controls national debt
Which are roles of FCA?
Authorises financial institutions
Supervises practices
Enforces standards
Provides savings accounts
Which are purposes of consumer credit legislation?
Protect consumers
Prevent unfair practices
Guarantee profit
Ensure clear terms
Which are providers of financial advice?
Citizens Advice
Independent Financial Advisor
Price comparison websites
Mortgage lender
Which are types of insurance?
Life insurance
Health insurance
Pet insurance
Credit insurance
Which factors affect car insurance premiums?
Driver age
Driving history
Type of car
Bank balance
Which are types of borrowing?
Overdraft
Personal loan
Hire purchase
Mortgage
Which are advantages of cash payments?
No risk of cloning
Works if tech fails
Cannot be stolen
Helps budgeting
Which are disadvantages of cash payments?
Risk of theft
Cannot be used online
Counterfeit risk
Always secure
Which are features of prepaid cards?
Helps control spending
Can overspend easily
Used abroad
Requires credit check
Which are similarities between credit cards and payday loans?
Both incur interest
Both short-term
Both require collateral
Both risk-free
Which are differences between credit cards and payday loans?
Payday loans have higher APR
Credit cards allow larger amounts
Payday loans paid end of month
Credit cards require collateral
Which are types of cards used for payment?
Credit card
Debit card
Prepaid card
Contactless card
Mobile banking
Which life events require large sums of money?
Going to university
Buying a car
Getting married
Starting a family
weekly shopping
Which are types of insurance other than car and travel?
Contents insurance
Life insurance
Health insurance
Pet insurance
Which are types of borrowing?
Overdraft
Personal loan
Hire purchase
Mortgage
Life time ISA
Which are advantages of using cash?
Works if technology fails
No risk of cloning
Helps budgeting
Cannot be stolen
Which are disadvantages of using cash?
Risk of theft
Cannot be used online
Threat of counterfeit
Always secure
Which factors affect car insurance premiums?
Driver age
Driving history
Type of car
Postcode
Credit History
Which are features of prepaid cards?
Helps control spending
Used abroad
Requires credit check
Can overspend easily
Which are drawbacks of travel insurance?
Additional expense
May never claim
Always guarantees return
Can be expensive
Which are features of hire purchase?
Pay monthly by instalment
Ownership after final payment
No eventual ownership
Used for expensive items such as vehicle
Which are features of leasing?
Which are differences between direct debit and standing order?
Direct debit allows variable amounts
Standing order is fixed amount
Both allow third-party withdrawals
Both are electronic
Which are similarities between credit card and payday loan?
Both incur interest
Both short-term
Both risk-free
Both require collateral
Which are differences between credit card and payday loan?
Payday loan has higher APR
Credit card allows larger amounts
Payday loan repaid end of month
Credit card requires collateral
Which are features of BACS and CHAPS?
Used for large transfers
Electronic payment
BACS slower than CHAPS
Both instant
Which are services offered by pawnbrokers?
Loans secured against assets
Sell items if not reclaimed
Provide mortgages
Offer savings accounts
Which are reasons mortgage lenders require building insurance?
Protect property as security
Reduce risk of loss
Increase interest rates
Ensure house can be sold if damaged
Which are roles of the Bank of England?
Sets interest rates
Issues legal tender
Provides consumer loans
Controls national debt
Which are roles of FCA?
Authorises financial institutions to provide financial products
Supervises practices carried out by financial institution
Enforces standards of the service and information on financial products
Provides savings accounts
Which are purposes of consumer credit legislation?
Protect consumers
Prevent unfair practices
Guarantee profit
Ensure clear terms
Which are providers of financial advice?
Citizens Advice
Independent Financial Advisor
Price comparison websites
Mortgage lender
Which are features of premium bonds?
Government-backed
Chance to win prizes
Guaranteed interest
Can cash anytime
Which are benefits of pensions?
Regular savings
Employer contributions
Tax advantages
Guaranteed high returns
Which are drawbacks of pensions?
Ongoing payments reduce disposable income
Final value uncertain
Always easy to transfer
Which are benefits of shares?
Potential capital growth
Dividends
Ownership perks
Guaranteed profit
Which are drawbacks of shares?
Value can fall
No guaranteed dividends
High volatility
Always risk-free
Which are types of current accounts?
Basic
Student
Standard
Mortgage
Which are features of packaged accounts?
Monthly fee
Includes travel insurance
Includes mobile insurance
Always free
Which are alternatives to branch banking?
Telephone banking
Online banking
Mobile banking
Postal banking
Which are drawbacks of postal banking?
Slow process
Cannot send cash
Risk of loss
Instant transactions
Which are risks of investment?
Loss of capital
No guaranteed return
Always safe
High volatility
Which are rewards of investment?
Potential high returns
More exciting than saving
Guaranteed income
Tax-free interest
Which are consumer protection bodies?
FOS
FSCS
OFT
FCA
Which are features of packaged current accounts?
Monthly fee
Extra benefits like insurance
Always free
Discounts at partner shops
Which are sources of financial advice?
Citizens Advice
Money Advice Service
Debt counsellors
Mortgage lender
