BS2268 Topic 1-7 Revision

Which of the following is a type of interest rate that varies and has

a maximum and minimum interest rate set?

• Fixed Rate

• Variable Rate

• Capped Rate

• Collared Rate

• Don't know

If you borrow £15,000 with an interest rate of 6% per annum which compounds quarterly, how much interest will you have incurred at the end of Year 1? Assume no payments are made towards the interest or principal sum during the year.

• £952

• £920

• £900

• £225

• Don't know

Which of the following types of mortgages is linked to a savings account

with the same bank and interest is charged each month

on the net balance of these two accounts?

• Fixed Rate

• Tracker

  Variable Rate

• Offset

• Flexible

• Don't know

If you purchase a property for £310,000, how much Land and Buildings Transaction Tax is payable? You are not a first-time buyer.

 

Purchase Price Band             LBTT Band Rate

Up to £145,000                       0%

£145,001 to £250,000            2%

£250,001 to £325,000            5%

£325,001 to £750,000            10%

Over £750,000                        12%

• £2,100

• £3,000

• £5,100

• £5,850

• Don't know

Which of the following types of mortgages charge interest using the lender’s default rate?  

• Fixed Rate

• Standard Variable Rate

• Tracker Variable Rate

• Discounted Variable Rate

• Don't know

Which of the following insurance policies is specifically linked to a debt product?

• Payment Protection Insurance

• Critical Illness Insurance

• Life

  Insurance

• Income Protection

  Insurance

• Don't know

Which of the following is TRUE for a Defined Contribution Pension Scheme?

• A defined contribution pension scheme is not available to the self employed

• The pension that will be received on retirement is always known with certainty

• The pension that will be received on retirement is impacted by the amount paid in and the performance of what the fund is invested in

• The pension that will be received on retirement is worked out by a formula, usually linked to pay and length of time in the scheme

• Don't know

You have a pension fund of £625,000 and plan to take the maximum percentage allowed tax-free and use the rest to buy an annuity. How much annual pension income will you receive if the annuity rate is £465?

• £29,062.50

• £21,796.88

• £23,250.00

• £26,156.25

• Don't know

A Lifetime ISA is designed to be used to save for specific purposes.

Which of the following is one of these?

• To help purchase a first car

• To build an emergency fund

• To help purchase a first home

• To save for university tuition fees

• Don't know

The rate used to compare savings products is known as the…?

• Annual Percentage Rate

• Average Percentage Rate

• Average Equivalent Rate

• Annual

  Equivalent Rate

• Don't know