LIBF UNIT 2 TOPIC 3

In financial planning a period of between one and five years is known as:

• short term planning

• medium term planning

• long term planning

• planning for retirement

Which of the following is an example of a want?

• Food

• Shelter

• Smartphone

• Clothing

A basic-rate taxpayer receiving savings interest of £1250 would pay total tax of:

• Nil

• 250

• 50

• 1000

Savings bonds tend to offer:

• higher interest rates than notice accounts

• lower interest rates than instant access accounts

• better access than notice accounts

• a free holiday abroad

A 16-year-old is permitted to open:

• a cash ISA and a junior ISA

• a stocks and shares ISA and a junior ISA

• a cash ISA and a stocks and shares ISA

• a Lifetime ISA

A savings account that requires the account holder to give notice if they wish to take money out is known as:

• an Instant Access Account.

• a Notice Account.

• a cash ISA.

• a bond.

A savings account that allows the saver to take out money as and when they need it is known as:

• a Notice Account

• an Instant Access Account

• A Sharia Compliant account

• a bond.