LiBF Unit 2 PPE 2

Where would be the best place to keep money for an emergency fund?

• In a long-term fixed deposit account
• In a safe place at home.
• In an instant-access savings account.
• With an adviser.

The best person to get impartial financial advice from would be:

• a building society adviser.
• a friend or family member.
• a solicitor.
• an independent financial adviser.

Planning can be undertaken for the short, medium or long term. What period of time would be classified as 'medium term'?

• 1 to 12 months.
• 1 to 5 years.
• 7 to 15 years.
• 10 to 20 years.

Which of the following is the most accurate definition of budgeting?

• Borrowing money from the bank.
• Checking your bank statement regularly.
• Estimating money coming in and going out over a period of time.
• Using online banking to track transactions.

Tom has a fixed-rate loan. If interest rates go up, what will be the immediate impact, if anything, on Tom's loan repayments? They will:

• fall by the rate of inflation.
• go up.
• reduce, but rise over time.
• remain unchanged.

A weakening in UK pound sterling would lead to:

• a boost in the UK's economy.
• cheaper imports.
• more expensive exports.
• reduced production in the UK.

In terms of the impact of personal spending on the economy, which of the following statements is true? Increased personal spending generally creates:

• higher levels of unemployment.
• increased company profits.
• lower receipts for the government.
• reduced personal income.

Where would you find a 'card security code'?

• Along the bottom of a cheque.
• In the top right-hand corner of a cheque.
• On the back of a debit card.
• On the front of a debit card.

What is someone looking for if they want to make sure they are getting the best goods for the cash they have available?

• The longest guarantees.
• The lowest-priced deals.
• The most expensive goods.
• Value for money.

When purchasing tickets online for a theatre show, what hidden charges might apply? The:

• cost of a programme at the theatre.
• drinks during the interval at the show.
• face value of the ticket.
• online booking fee.