F.1 CES Final-year Exam Revision Challenge

Which of the following is NOT a use of money?

• Consumption

• Investment

• Borrowing

• Donations

What is the main difference between a 'need' and a 'want'?

• Needs are not necessary for basic living, wants are.

• Needs are necessary for basic living, wants are not.

• Wants are always more expensive than needs.

• Needs are only for adults, wants are for children.

What does overspending mean?

• Buying only what you need

• Saving more money than you spend

• Buying items you want even if you have no spare money

• Investing in the stock market

Which of the following best describes 'borrowing'?

• Giving money to a friend

• Receiving money as a gift

• Taking money with the promise to return it with interest over a period

• Saving money in a bank account

What is a risk of being unable to repay debts?

• Higher credit scores

• Lower credit scores

• Winning a lottery

• Getting a promotion

Which of the following is NOT a service provided by financial institutions in Hong Kong?

• Deposit services

• Insurance services

• Loan services

• Restaurant services

Why might using a credit card be risky if you only repay part of the debt?

• You will get a reward

• You will be charged compound interest, which can be up to 40%

• The bank will forgive your debt

• You will earn more interest

Which statement about savings deposits is correct?

• Depositors cannot withdraw their deposits at any time

• The interest rate is very high

• Depositors can withdraw their deposits at any time, but the interest rate is relatively low

• Only banks can make savings deposits

What is a key feature of time deposits?

• Depositors can withdraw their deposits at any time with no penalty.

• Depositors can withdraw their deposits after a predetermined time and receive a relatively high interest rate.

• Depositors do not earn any interest on their deposits.

• Depositors can only deposit money once and cannot add more funds.

Why might someone choose a time deposit over a regular savings account?

• Because time deposits offer lower interest rates.

• Because time deposits allow unlimited withdrawals at any time.

• Because time deposits offer relatively high interest rates if money is kept for a set period.

• Because time deposits do not require a minimum balance.