CEFS Unit 1 Topic 1-2

Money is used as a unit of account to (tick all that apply) p11

• to record transactions

• to compare prices

• to save money

• to increase wealth

If inflation is high then purchasing power:

• stays the same

• increases

• decreases

• goes up then down then up again

Which are features of a current account?

• has a debit card

• overdraft facility

• can withdraw cash at an ATM

• can have standing orders set up for saving

At different stages of the lifecycle people have (p18) (tick all that apply):

• different levels of income

• similar to debt

• different family sizes and structure

• similar beliefs on savings

Financial considerations for retirement include (p31)

• life expectancy (health)

• quality of life (how much money you want as disposable income)

• The job you have

• How many grandchildren you want

Migration refers to

• The movement of people between countries

• The laws for people holidaying abroad

Which of the following is not an advantage of cash (p38)

• convenient

• divisible into smaller denominations

• instant transfer of value

• can keep track of what you are spending

Direct debits are which of the following (p47)

• flexible amounts

• used for bills that change regularly

• used for fixed bills

• used to transfer money to saving

Package bank accounts often feature which of the following (p57):

• travel insurance

• direct debits

• pay a fee to use

• council tax