Quiz
Specimen Paper B - Unit 1 – Finance, the Individual and Society (FIS)
Questions in this quiz (35)
1A way of becoming a UK citizen is by:
- AEmigration
- BImmigration
- CNaturalisation
- DVoting
2Lower interest rates mean people will:
- ABorrow less
- BSave more
- CSpend less
- DSpend more
3It is thought that the overdraft was invented in:
- AEngland
- BIreland
- CScotland
- DWales
4Disposable income is:
- AGross pay minus taxes and National Insurance
- BIncome minus all expenses
- CIncome minus taxes
- DPay before deduction of tax and National Insurance
5Taxes are government:
- ABorrowing
- BInterest
- CRevenue
- DSpending
6The main purpose of taxation is to:
- AEncourage earning
- BEncourage spending
- CFund public spending
- DFund social enterprises
7An increase in the personal allowance will mean that a taxpayer should have:
- ALess gross pay
- BLess net pay
- CMore gross pay
- DMore net pay
8When more people are employed by businesses:
- ALess National Insurance is collected
- BMore National Insurance is collected
- CMore Jobseeker's Allowance is paid
- DThe national debt goes up
9Which of the following combinations leads to a financial 'bubble'?
- AHigh prices, high demand
- BHigh prices, low demand
- CLow prices, high demand
- DLow prices, low demand
10Poor financial choices can lead to:
- AEffective planning
- BIncreasing debt
- CLess spending
- DLower interest rates
11Which of the following does inflation measure?
- AEconomic growth
- BInterest rates
- CThe cost of borrowing
- DThe rate of increase in prices
12In order to measure CPI, the Office for National Statistics identifies a basket of goods and services which is:
- AReflective of what a typical individual buys
- BReflective of what the average household buys
- CUsed by all households
- DUsed by all individuals
13Interest is the cost of:
- ASaving instead of spending
- BSpending instead of saving
- CUsing someone else’s money
- DUsing your own money
14When interest rates fall, this is bad news for people with:
- ACredit cards
- BMortgages
- COverdrafts
- DSavings
15Rapidly rising house prices most favour:
- AHome owners with no mortgage
- BPeople trying to buy their first home
- CSavings accounts
- DTenants wanting to buy
16A commuter belt is where people:
- ALive and usually work
- BLive, but they usually work elsewhere
- CTravel in to the countryside for work
- DWork, but they usually live elsewhere
17Which of the following countries uses dollars?
- AAustralia
- BGermany
- CJapan
- DUnited Kingdom
18If the pound sterling has been strengthening against the euro then when Natalie visits France next week she will:
- AGet fewer euros for her pounds sterling
- BGet more euros for her pounds sterling
- CGet the same number of euros for her pounds sterling
- DPay more commission
19Which of the following events is certain?
- ADeath
- BDivorce
- CEmigration
- DRedundancy
20A 17-year-old taking A levels will usually be least concerned about:
- AMinimum-wage rates
- BMortgage rates
- CStudent loans
- DThe cost of driving lessons
21Case Study 1
Kyle is 17 and has been learning about the dangers of payday loans; he is shocked. He decides that he should establish good financial habits straight away.
He has a part-time job paying £40 a week, he receives £5 a week pocket money from his grandmother, and he gets a £10 weekly allowance from his parents. Kyle decides that he will restrict his spending to £20 a week in cash, and put the rest in a building society ISA. He also saves up any 50p coins he receives in change and puts these into his ISA each time he has a jar full.
Question:
Kyle's 50p coins are made by:- ABitcoin
- BDe La Rue
- CThe Bank of England
- DThe Royal Mint
22Case Study 1
Kyle is 17 and has been learning about the dangers of payday loans; he is shocked. He decides that he should establish good financial habits straight away.
He has a part-time job paying £40 a week, he receives £5 a week pocket money from his grandmother, and he gets a £10 weekly allowance from his parents. Kyle decides that he will restrict his spending to £20 a week in cash, and put the rest in a building society ISA. He also saves up any 50p coins he receives in change and puts these into his ISA each time he has a jar full.
Question:
Kyle's weekly earned income amounts to:- A£40
- B£45
- C£50
- D£55
23Case Study 1
Kyle is 17 and has been learning about the dangers of payday loans; he is shocked. He decides that he should establish good financial habits straight away.
He has a part-time job paying £40 a week, he receives £5 a week pocket money from his grandmother, and he gets a £10 weekly allowance from his parents. Kyle decides that he will restrict his spending to £20 a week in cash, and put the rest in a building society ISA. He also saves up any 50p coins he receives in change and puts these into his ISA each time he has a jar full.
Question:
Because Kyle places some of his income in a building society account, this means that other people are able to:- ABorrow
- BEarn
- CSave
- DSpend
24Case Study 2
Nancy rents a one-bedroomed flat in Norwich. She is an operations manager at a life insurance company in the town, earning £60,000 a year. She is about to buy her first property, a two-bedroomed semi-detached house with a small garden, which is on the market for £199,950. She is putting down a deposit of £30,000.
Nancy has worked out her budget and, although her monthly repayments will be quite high, she can afford them providing she keeps earning the same amount and does not overspend on discretionary items.
Question:
At what rate does Nancy pay income tax on her earnings?- AAdditional rate
- BBasic rate
- CHigher rate
- DStarting rate
25Case Study 2
Nancy rents a one-bedroomed flat in Norwich. She is an operations manager at a life insurance company in the town, earning £60,000 a year. She is about to buy her first property, a two-bedroomed semi-detached house with a small garden, which is on the market for £199,950. She is putting down a deposit of £30,000.
Nancy has worked out her budget and, although her monthly repayments will be quite high, she can afford them providing she keeps earning the same amount and does not overspend on discretionary items.
Question:
What tax will Nancy have to pay on her property purchase?- ACapital gains tax
- BIncome tax
- CInheritance tax
- DStamp duty
26Case Study 2
Nancy rents a one-bedroomed flat in Norwich. She is an operations manager at a life insurance company in the town, earning £60,000 a year. She is about to buy her first property, a two-bedroomed semi-detached house with a small garden, which is on the market for £199,950. She is putting down a deposit of £30,000.
Nancy has worked out her budget and, although her monthly repayments will be quite high, she can afford them providing she keeps earning the same amount and does not overspend on discretionary items.
Question:
An increase in which of the following taxes will make it harder for Nancy to meet her monthly outgoings?- ACorporation tax
- BIncome tax
- CInheritance tax
- DStamp duty
27Case Study 3
Hollie is 16 and about to take her GCSEs. Most of her friends are going to take A levels and then go to university. Hollie is interested in engineering and her dad has been talking about the value of apprenticeships.
Her research informs her that the nearby steelworks is offering well-paid apprenticeships, leading to a degree. Hollie's mum is worried about the debt Hollie would take on by going to university. Her mum and dad will help as much as they can whatever she does, but, with two younger children, there's very little money to spare.
Question:
If Hollie takes on the apprenticeship after her GCSEs she could earn enough to pay tax and National Insurance, so she wonders why she cannot vote. What else can Hollie not do?- ACreate an e-petition online
- BRefuse to pay income tax
- CRegister to vote
- DWrite to her MP
28Case Study 3
Hollie is 16 and about to take her GCSEs. Most of her friends are going to take A levels and then go to university. Hollie is interested in engineering and her dad has been talking about the value of apprenticeships.
Her research informs her that the nearby steelworks is offering well-paid apprenticeships, leading to a degree. Hollie's mum is worried about the debt Hollie would take on by going to university. Her mum and dad will help as much as they can whatever she does, but, with two younger children, there's very little money to spare.
Question:
The government decides how much:- AHoliday pay Hollie will receive from her employer
- BIncome protection insurance Hollie should have
- CHollie should save from her income
- DHollie must earn as a minimum in her apprenticeship
29Case Study 3
Hollie is 16 and about to take her GCSEs. Most of her friends are going to take A levels and then go to university. Hollie is interested in engineering and her dad has been talking about the value of apprenticeships.
Her research informs her that the nearby steelworks is offering well-paid apprenticeships, leading to a degree. Hollie's mum is worried about the debt Hollie would take on by going to university. Her mum and dad will help as much as they can whatever she does, but, with two younger children, there's very little money to spare.
Question:
Hollie applies for the apprenticeship. In making this decision, the strongest influence on her personal values seems to be:- AHer family
- BHer peer group
- CThe government
- DThe media
30Case Study 4
Daniel is a physics teacher aged 28. He lives in a rented flat in Manchester with his girlfriend Laura, who is a nurse aged 25. They plan to buy a place of their own, get married and start a family.
They have already saved £10,000 towards a deposit and other house-buying costs, and are putting aside at least £500 per month with a building society. They have been offered a fixed-rate mortgage for 4 years at 2.5% APR. Laura has read that the UK economy is nearing its peak and that interest rates are historically low.
Question:
Over the next few years particularly, Daniel and Laura will need to avoid poor financial decision-making as:- ADaniel's income is likely to reduce
- BLaura's financial risk will decrease
- CTheir financial responsibilities are likely to increase
- DTheir joint expenditure is expected to reduce
31Case Study 4
Daniel is a physics teacher aged 28. He lives in a rented flat in Manchester with his girlfriend Laura, who is a nurse aged 25. They plan to buy a place of their own, get married and start a family.
They have already saved £10,000 towards a deposit and other house-buying costs, and are putting aside at least £500 per month with a building society. They have been offered a fixed-rate mortgage for 4 years at 2.5% APR. Laura has read that the UK economy is nearing its peak and that interest rates are historically low.
Question:
The mortgage Daniel and Laura have chosen means that during the next year, if interest rates:- AGo up, they will pay less
- BGo up, they will pay more
- CGo down, they will pay less
- DGo down, they will pay the same
32Case Study 4
Daniel is a physics teacher aged 28. He lives in a rented flat in Manchester with his girlfriend Laura, who is a nurse aged 25. They plan to buy a place of their own, get married and start a family.
They have already saved £10,000 towards a deposit and other house-buying costs, and are putting aside at least £500 per month with a building society. They have been offered a fixed-rate mortgage for 4 years at 2.5% APR. Laura has read that the UK economy is nearing its peak and that interest rates are historically low.
Question:
What is the next stage of the economic cycle that Daniel and Laura will experience?- ABubble
- BExpansion
- CSlowdown
- DTrough
33Case Study 5
Claire is a student at the University of Bristol. Her monthly income is £400 and her monthly outgoings are £440. She enjoys clothes shopping with friends and has an outstanding balance on her student credit card, and a personal loan on which there is a monthly payment of £75.
Claire has a part-time job in a factory which specialises in making components for swimming pools and whirlpool baths. The majority of the factory’s parts are shipped to the United States. She earns £200 a month and, as this income is well within her personal allowance, she does not have to pay income tax on it.
Question:
Which of the following is not an effect of Claire making purchases?- AShe contributes to the income of the businesses
- BThe businesses are able to pay corporation tax
- CThe businesses are able to pay income tax
- DThe businesses are able to pay their employees
34Case Study 5
Claire is a student at the University of Bristol. Her monthly income is £400 and her monthly outgoings are £440. She enjoys clothes shopping with friends and has an outstanding balance on her student credit card, and a personal loan on which there is a monthly payment of £75.
Claire has a part-time job in a factory which specialises in making components for swimming pools and whirlpool baths. The majority of the factory’s parts are shipped to the United States. She earns £200 a month and, as this income is well within her personal allowance, she does not have to pay income tax on it.
Question:
The first thing Claire should do in terms of her finances is:- AMake only the minimum monthly repayment on her credit card
- BReduce her personal loan payments
- CReduce her unnecessary spending
- DUse her overdraft facility
35Case Study 5
Claire is a student at the University of Bristol. Her monthly income is £400 and her monthly outgoings are £440. She enjoys clothes shopping with friends and has an outstanding balance on her student credit card, and a personal loan on which there is a monthly payment of £75.
Claire has a part-time job in a factory which specialises in making components for swimming pools and whirlpool baths. The majority of the factory’s parts are shipped to the United States. She earns £200 a month and, as this income is well within her personal allowance, she does not have to pay income tax on it.
Question:
The factory Claire works in will find it harder to export to the United States when the:- ADollar is strong and the euro is strong
- BDollar is strong and the pound sterling is weak
- CEuro is weak and the pound sterling is weak
- DPound sterling is strong and the dollar is weak
Information
- Description
- Level 2 PERSONAL FINANCE (CeFF) Quiz on Specimen Paper B - Unit 1 – Finance, the Individual and Society (FIS), created by Carina Storm on 02/12/2018.
- Author
- Carina Storm
- Language
- English
- Views
- 1,219
- Tags
- Rating
- No ratings yet Rate this quiz