CEFS Unit 1 Mock Mock Mock

Demutualisation describes the process of:

• banks becoming building societies.

• banks taking over other banks.

• building societies becoming banks.

• building societies taking over other building societies.

The AER interest rate is used for which type of account?

• Saving

• Credit Cards

• Overdraft

• Inflation

British banknotes have a promise on them to ‘pay the bearer on demand the sum of’ followed by the amount of money the banknote represents.

This promise is signed by the:

• Chancellor of the Exchequer.

• Chief Cashier of the Bank of England.

• Governor of the Bank of England.

• Prime Minister.

The RPI rate is a measure of...

• Saving

• Credit Cards

• Overdraft

• Inflation

The APR interest rate is used for which type of account?

• Saving

• Credit Cards

• Overdraft

• Inflation

Which of the following is usually a feature of a savings bond?

• It pays a lower rate of interest than an instant access account.

• It is for a set period of time.

• The rate of interest is variable.

• Withdrawals of funds are not restricted.

National Savings and Investments (NS&I) savings products are popular because the money saved is:

• 50% guaranteed.

• 75% guaranteed.

• 85% guaranteed.

• 100% guaranteed.

With a credit card, the cardholder...

• must pay the full amount at the end of the month

• can choose to pay a minimum payment each month rather than the full balance outstanding.

• can not pay anything.

Where are banknotes issued in Northern Ireland legal tender?

• England and Northern Ireland.

• England, Scotland, and Northern Ireland.

• Northern Ireland only.

• They are not legal tender anywhere.

Which of the following is responsible for ensuring that all financial services providers operate in a way that benefits consumers and the market as a whole?

• The Financial Conduct Authority (FCA).

• The Financial Policy Committee (FPC).

• The Financial Services Compensation Scheme (FSCS).

• The Prudential Regulation Authority (PRA).