An account typically used for day-to-day finances is known as a:

Savings accounts are mostly offered by:

A short-term financial plan is normally considered to be anything up to:

A consequence of failing to budget can be:

A rise in interest rates would benefit a person with a:

If the pound sterling strengthens against the yen then:

Increased consumer spending generally leads to:

Which of the following is an electronic payment system specifically used for very high-value payments?

Value for money is about:

On the majority of goods value added tax (VAT) is charged at:

Which of the following transactions is likely to incur a service charge?

Which of the following has the greatest negative impact on a solid foundation for economic growth?

Which of the following would be classified as a 'good' debt? Borrowing to:

Which of the following is the best short-term borrowing solution for a person needing to get their car repaired?

Which of the following is an agreement between a person and their creditors, whereby the creditors agree for the person to pay a proportion of their debt over a fixed period?

Case Study 1
Jack works full-time at a branch of a nationwide firm of estate agents. He earns a basic salary of £21,000 a year, which works out at £404 gross a week. He also earns commission on each property he sells. This commission is accumulated by the firm and paid out in December each year.
Jack’s flat mate, Emma, is self-employed. She has an annual turnover of £21,000 and keeps a detailed record of all the money that comes into and goes out of her business. Both Jack and Emma are saving for a mortgage deposit, so that they can move out of the flat and each get a place of their own.

Question:
Which of the following numbers that appear on Jack's payslip does the government use to identify him?

Case Study 1
Jack works full-time at a branch of a nationwide firm of estate agents. He earns a basic salary of £21,000 a year, which works out at £404 gross a week. He also earns commission on each property he sells. This commission is accumulated by the firm and paid out in December each year.
Jack’s flat mate, Emma, is self-employed. She has an annual turnover of £21,000 and keeps a detailed record of all the money that comes into and goes out of her business. Both Jack and Emma are saving for a mortgage deposit, so that they can move out of the flat and each get a place of their own.

Question:
Emma must complete her self-assessment online tax return by:

Case Study 1
Jack works full-time at a branch of a nationwide firm of estate agents. He earns a basic salary of £21,000 a year, which works out at £404 gross a week. He also earns commission on each property he sells. This commission is accumulated by the firm and paid out in December each year.
Jack’s flat mate, Emma, is self-employed. She has an annual turnover of £21,000 and keeps a detailed record of all the money that comes into and goes out of her business. Both Jack and Emma are saving for a mortgage deposit, so that they can move out of the flat and each get a place of their own.

Question:
Which of the following are important tax documents that Jack may receive by virtue of being an employee?

Case Study 1
Jack works full-time at a branch of a nationwide firm of estate agents. He earns a basic salary of £21,000 a year, which works out at £404 gross a week. He also earns commission on each property he sells. This commission is accumulated by the firm and paid out in December each year.
Jack’s flat mate, Emma, is self-employed. She has an annual turnover of £21,000 and keeps a detailed record of all the money that comes into and goes out of her business. Both Jack and Emma are saving for a mortgage deposit, so that they can move out of the flat and each get a place of their own.

Question:
Jack's tax code is 1100L. How much annual tax does he pay on his basic salary of £21,000?

Case Study 2
Sven’s boiler has broken down. The repair company has been unable to fix the problem and has advised him that he needs to have a new one installed. It has quoted him £2,000. Sven has looked online and found that the majority of companies charge around £2,000. He feels that this is a fair price. The repair company has also said that it has an insurance scheme he can join where, if he pays £20 a month, they will come out and sort any problems with the boiler for as long as he remains a member of the scheme. Sven thinks it is a good idea but, as he is already on a tight budget, he is unsure where he can find the extra £20 a month to pay for it. Sven’s main expenditure items are his mortgage payments, household bills, car running costs and gym membership.

Question:
Which of the following items of expenditure could Sven give up to raise funds to join the boiler insurance scheme?

Case Study 2
Sven’s boiler has broken down. The repair company has been unable to fix the problem and has advised him that he needs to have a new one installed. It has quoted him £2,000. Sven has looked online and found that the majority of companies charge around £2,000. He feels that this is a fair price. The repair company has also said that it has an insurance scheme he can join where, if he pays £20 a month, they will come out and sort any problems with the boiler for as long as he remains a member of the scheme. Sven thinks it is a good idea but, as he is already on a tight budget, he is unsure where he can find the extra £20 a month to pay for it. Sven’s main expenditure items are his mortgage payments, household bills, car running costs and gym membership.

Question:
Which of the following would be the ideal solution for paying off Sven's new boiler?

Case Study 2
Sven’s boiler has broken down. The repair company has been unable to fix the problem and has advised him that he needs to have a new one installed. It has quoted him £2,000. Sven has looked online and found that the majority of companies charge around £2,000. He feels that this is a fair price. The repair company has also said that it has an insurance scheme he can join where, if he pays £20 a month, they will come out and sort any problems with the boiler for as long as he remains a member of the scheme. Sven thinks it is a good idea but, as he is already on a tight budget, he is unsure where he can find the extra £20 a month to pay for it. Sven’s main expenditure items are his mortgage payments, household bills, car running costs and gym membership.

Question:
If Sven decided to borrow to fund his boiler purchase, which of the following products would take the most out of his monthly budget?

Case Study 2
Sven’s boiler has broken down. The repair company has been unable to fix the problem and has advised him that he needs to have a new one installed. It has quoted him £2,000. Sven has looked online and found that the majority of companies charge around £2,000. He feels that this is a fair price. The repair company has also said that it has an insurance scheme he can join where, if he pays £20 a month, they will come out and sort any problems with the boiler for as long as he remains a member of the scheme. Sven thinks it is a good idea but, as he is already on a tight budget, he is unsure where he can find the extra £20 a month to pay for it. Sven’s main expenditure items are his mortgage payments, household bills, car running costs and gym membership.

Question:
If Sven decides to borrow, his best course of action if interest rates rise in the near future will be to cut back:

Case Study 3
Shalik is in debt to his credit card company. He has an outstanding balance of £3,000. The variable interest rate on his card is 20%. The minimum monthly payment required each month is 3% of the balance. Unfortunately, Shalik’s monthly outgoings exceed his income to the extent that he constantly has to use his overdraft. He is therefore struggling to afford even the minimum repayment on his credit card, and has not made any payments at all for the last three months.
So far, he has ignored the letters from the credit card company asking him to get in touch to talk about the missed repayments. Shalik owns his own flat, which is currently worth £150,000.

Question:
How much interest is due on Shalik's monthly credit card repayment?

Case Study 3
Shalik is in debt to his credit card company. He has an outstanding balance of £3,000. The variable interest rate on his card is 20%. The minimum monthly payment required each month is 3% of the balance. Unfortunately, Shalik’s monthly outgoings exceed his income to the extent that he constantly has to use his overdraft. He is therefore struggling to afford even the minimum repayment on his credit card, and has not made any payments at all for the last three months.
So far, he has ignored the letters from the credit card company asking him to get in touch to talk about the missed repayments. Shalik owns his own flat, which is currently worth £150,000.

Question:
What effect is not making the minimum repayments going to have on Shalik's budget?

Case Study 3
Shalik is in debt to his credit card company. He has an outstanding balance of £3,000. The variable interest rate on his card is 20%. The minimum monthly payment required each month is 3% of the balance. Unfortunately, Shalik’s monthly outgoings exceed his income to the extent that he constantly has to use his overdraft. He is therefore struggling to afford even the minimum repayment on his credit card, and has not made any payments at all for the last three months.
So far, he has ignored the letters from the credit card company asking him to get in touch to talk about the missed repayments. Shalik owns his own flat, which is currently worth £150,000.

Question:
What step should Shalik now take regarding the missed payments? He should:

Case Study 3
Shalik is in debt to his credit card company. He has an outstanding balance of £3,000. The variable interest rate on his card is 20%. The minimum monthly payment required each month is 3% of the balance. Unfortunately, Shalik’s monthly outgoings exceed his income to the extent that he constantly has to use his overdraft. He is therefore struggling to afford even the minimum repayment on his credit card, and has not made any payments at all for the last three months.
So far, he has ignored the letters from the credit card company asking him to get in touch to talk about the missed repayments. Shalik owns his own flat, which is currently worth £150,000.

Question:
If the credit card company resorts to applying for a county court judgment, who decides how much Shalik's repayments will be?

Case Study 4
Alfie is about to buy his first home. He has had his offer on a one-bedroomed flat accepted and a lender has agreed to give him the mortgage he requires. He saw a financial adviser to discuss the products he might need to ensure he will not lose the flat if he is unable to make his monthly mortgage payments for any reason. He was pleased when the adviser told him that she could recommend products from the whole of the market, so she would be able to shop around to get him a good price as well as the best cover available.
Alfie has received a bill for the adviser's services that he needs to pay within the next 14 days. Alfie does not like using the internet; he likes being able to talk to someone at the bank when he needs to. Given his long working hours, he often ends up doing his banking in the evening.

Question:
What sort of a financial adviser did Alfie go to see?

Case Study 4
Alfie is about to buy his first home. He has had his offer on a one-bedroomed flat accepted and a lender has agreed to give him the mortgage he requires. He saw a financial adviser to discuss the products he might need to ensure he will not lose the flat if he is unable to make his monthly mortgage payments for any reason. He was pleased when the adviser told him that she could recommend products from the whole of the market, so she would be able to shop around to get him a good price as well as the best cover available.
Alfie has received a bill for the adviser's services that he needs to pay within the next 14 days. Alfie does not like using the internet; he likes being able to talk to someone at the bank when he needs to. Given his long working hours, he often ends up doing his banking in the evening.

Question:
What immediate financial need does Alfie have?

Case Study 4
Alfie is about to buy his first home. He has had his offer on a one-bedroomed flat accepted and a lender has agreed to give him the mortgage he requires. He saw a financial adviser to discuss the products he might need to ensure he will not lose the flat if he is unable to make his monthly mortgage payments for any reason. He was pleased when the adviser told him that she could recommend products from the whole of the market, so she would be able to shop around to get him a good price as well as the best cover available.
Alfie has received a bill for the adviser's services that he needs to pay within the next 14 days. Alfie does not like using the internet; he likes being able to talk to someone at the bank when he needs to. Given his long working hours, he often ends up doing his banking in the evening.

Question:
Which of the following types of banking is most likely to appeal to Alfie?

Case Study 4
Alfie is about to buy his first home. He has had his offer on a one-bedroomed flat accepted and a lender has agreed to give him the mortgage he requires. He saw a financial adviser to discuss the products he might need to ensure he will not lose the flat if he is unable to make his monthly mortgage payments for any reason. He was pleased when the adviser told him that she could recommend products from the whole of the market, so she would be able to shop around to get him a good price as well as the best cover available.
Alfie has received a bill for the adviser's services that he needs to pay within the next 14 days. Alfie does not like using the internet; he likes being able to talk to someone at the bank when he needs to. Given his long working hours, he often ends up doing his banking in the evening.

Question:
Which of the following payment methods would take the longest to reach Alfie's financial adviser's business account?

Case Study 5
Geoff, aged 57, has been made redundant from his life-long job at the local printer factory. He was known for his strong work ethic and for never taking a sick day in his career. Geoff did not expect to be made redundant at his age, and although he received a fairly large redundancy payment, with which he paid off his debts, he is now struggling to balance his budget each month.
He wants to resolve this situation, and ideally have enough money left over each month to top up his pension provision.

Question:
Which of the following personal circumstances makes it harder for Geoff to get a new job?

Case Study 5
Geoff, aged 57, has been made redundant from his life-long job at the local printer factory. He was known for his strong work ethic and for never taking a sick day in his career. Geoff did not expect to be made redundant at his age, and although he received a fairly large redundancy payment, with which he paid off his debts, he is now struggling to balance his budget each month.
He wants to resolve this situation, and ideally have enough money left over each month to top up his pension provision.

Question:
At what stage of the life cycle is Geoff?

Case Study 5
Geoff, aged 57, has been made redundant from his life-long job at the local printer factory. He was known for his strong work ethic and for never taking a sick day in his career. Geoff did not expect to be made redundant at his age, and although he received a fairly large redundancy payment, with which he paid off his debts, he is now struggling to balance his budget each month.
He wants to resolve this situation, and ideally have enough money left over each month to top up his pension provision.

Question:
Which of the following actions would have the least impact on Geoff's budget?

Case Study 5
Geoff, aged 57, has been made redundant from his life-long job at the local printer factory. He was known for his strong work ethic and for never taking a sick day in his career. Geoff did not expect to be made redundant at his age, and although he received a fairly large redundancy payment, with which he paid off his debts, he is now struggling to balance his budget each month.
He wants to resolve this situation, and ideally have enough money left over each month to top up his pension provision.

Question:
What does Geoff need in order to make savings each month into his pension?