End of Unit 2 Quiz

Which of the following is NOT a common way to manage your money in today’s banking world?

Visiting a bank branch

Correct Incorrect Correct answer

Banking over the phone

Correct Incorrect Correct answer

Writing cheques

Correct Incorrect Correct answer

Banking on your mobile

Correct Incorrect Correct answer

What is a key advantage of online bank statements compared to paper statements?

They are more environmentally friendly

Correct Incorrect Correct answer

You can access statements from years ago

Correct Incorrect Correct answer

They are less likely to be lost

Correct Incorrect Correct answer

All of the above

Correct Incorrect Correct answer

Which of the following is NOT a typical function of a debit card?

Withdrawing cash from ATMs

Correct Incorrect Correct answer

Making purchases in shops

Correct Incorrect Correct answer

Earning rewards points on purchases

Correct Incorrect Correct answer

Getting cashback when making a purchase

Correct Incorrect Correct answer

When using a credit card, what typically happens if you exceed your credit limit?

Your card is immediately cancelled

Correct Incorrect Correct answer

You are charged a fee

Correct Incorrect Correct answer

Your credit limit is automatically increased

Correct Incorrect Correct answer

You are required to pay the full balance immediately

Correct Incorrect Correct answer

Which payment method is most suitable for making high-value, same-day transfers?

BACS

Correct Incorrect Correct answer

Faster Payments

Correct Incorrect Correct answer

CHAPS

Correct Incorrect Correct answer

Standing Order

Correct Incorrect Correct answer

What helps determine if you can afford to borrow money?

Your age

Correct Incorrect Correct answer

Your job stability

Correct Incorrect Correct answer

Your credit card limit

Correct Incorrect Correct answer

Your savings history

Correct Incorrect Correct answer

If Zara borrows £2,000 at 10% interest for one year, what will her monthly interest payment be?

£200

Correct Incorrect Correct answer

£20

Correct Incorrect Correct answer

£16.67

Correct Incorrect Correct answer

£166.70

Correct Incorrect Correct answer

What does it mean when an item depreciates?

It increases in value over time

Correct Incorrect Correct answer

It becomes worth less money over time

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It maintains its original value

Correct Incorrect Correct answer

It must be paid for in full immediately

Correct Incorrect Correct answer

James wants to exchange £300 into US dollars. The exchange rate is £1 = $1.28. How many dollars will James receive?

$234

Correct Incorrect Correct answer

$328

Correct Incorrect Correct answer

$384

Correct Incorrect Correct answer

$428

Correct Incorrect Correct answer

Which feature best describes a traveller’s cheque?

It can only be used in one specific country

Correct Incorrect Correct answer

It requires two signatures for security

Correct Incorrect Correct answer

It has no serial number

Correct Incorrect Correct answer

It cannot be replaced if lost

Correct Incorrect Correct answer

Regular budget monitoring is important because:

It automatically increases your income

Correct Incorrect Correct answer

It prevents all overspending

Correct Incorrect Correct answer

It helps identify changes in expenses early

Correct Incorrect Correct answer

It guarantees a surplus

Correct Incorrect Correct answer

Sarah’s monthly income is £2,500 and her monthly expenditure is £2,300. Her budget can best be described as:

balanced

Correct Incorrect Correct answer

in deficit

Correct Incorrect Correct answer

in surplus

Correct Incorrect Correct answer

unmanaged

Correct Incorrect Correct answer

What is the main purpose of investing?

What is the main purpose of investing?

Correct Incorrect Correct answer

To make your money grow over time

Correct Incorrect Correct answer

To avoid paying taxes

Correct Incorrect Correct answer

To have instant access to cash

Correct Incorrect Correct answer

Which of the following best describes a term deposit?

An investment with unlimited access to funds

Correct Incorrect Correct answer

A fixed-term agreement with guaranteed interest

Correct Incorrect Correct answer

A high-risk investment option

Correct Incorrect Correct answer

A flexible savings account

Correct Incorrect Correct answer

When investing in a company’s shares on the stock market, which factor most directly influences their market value?

Public perception and confidence in the company

Correct Incorrect Correct answer

The Bank of England base rate

Correct Incorrect Correct answer

Government deposit guarantees

Correct Incorrect Correct answer

Fixed interest rates offered by savings accounts

Correct Incorrect Correct answer

Case Study 1

Sophia recently started working as a receptionist at Starlight Dental Practice. She works full-time and earns £1,500 per month. Her payslip shows she has a tax code of 1257L

Which of these deductions will appear on Sophia’s payslip?

Student loan only

Correct Incorrect Correct answer

Tax only

Correct Incorrect Correct answer

National Insurance only

Correct Incorrect Correct answer

Both tax and National Insurance

Correct Incorrect Correct answer

Sophia’s tax code 1257L shows that she:

must pay extra tax

Correct Incorrect Correct answer

has the standard personal allowance

Correct Incorrect Correct answer

is on emergency tax

Correct Incorrect Correct answer

pays no tax

Correct Incorrect Correct answer

How often should Sophia receive a payslip?

Every day

Correct Incorrect Correct answer

Every week

Correct Incorrect Correct answer

Every month

Correct Incorrect Correct answer

Every year

Correct Incorrect Correct answer

Who collects the tax from Sophia’s wages?

Her employer

Correct Incorrect Correct answer

Her bank

Correct Incorrect Correct answer

HMRC

Correct Incorrect Correct answer

The NHS

Correct Incorrect Correct answer

Why does Sophia pay National Insurance?

To pay for her car insurance

Correct Incorrect Correct answer

To pay for government benefits

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To pay for her dental care

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To pay for her uniform

Correct Incorrect Correct answer

Case Study 2

Beth is 19 and wants to buy a laptop for her university studies. The electronics store offers two payment options: either spreading the cost over 12 months at 0% interest, or a 10% discount for paying in full now. The laptop costs £900.

If Beth chooses the 12-month payment option, what must the store provide her with?

A verbal agreement over the phone

Correct Incorrect Correct answer

A written credit agreement

Correct Incorrect Correct answer

An email confirmation only

Correct Incorrect Correct answer

A store receipt

Correct Incorrect Correct answer

Which of these is true about the cooling-off period?

It only applies to in-store purchases

Correct Incorrect Correct answer

It allows customers to return used items

Correct Incorrect Correct answer

It gives time to cancel the credit agreement without penalty

Correct Incorrect Correct answer

It's only available for purchases over £1,000

Correct Incorrect Correct answer

If Beth only manages to pay off £600 when the 0% period ends, what typically happens?

She gets another 0% period automatically

Correct Incorrect Correct answer

She pays interest on the remaining balance at a higher rate

Correct Incorrect Correct answer

The laptop must be returned

Correct Incorrect Correct answer

The remaining balance is written off

Correct Incorrect Correct answer

If Beth chooses the 10% discount option, how much would she save on the £900 laptop?

£45

Correct Incorrect Correct answer

£90

Correct Incorrect Correct answer

£95

Correct Incorrect Correct answer

£190

Correct Incorrect Correct answer

Which of these best describes the type of credit being offered?

Interest-free credit

Correct Incorrect Correct answer

Hire purchase

Correct Incorrect Correct answer

Personal loan

Correct Incorrect Correct answer

Store card

Correct Incorrect Correct answer

Case Study 3

Emma, aged 28, works as a nurse on a permanent contract earning £32,000 per year. She bought her first home two years ago with a £180,000 mortgage. Recently, she developed a serious health condition requiring her to reduce her hours by half for at least 6 months. Her income has dropped to £16,000 per year, but her monthly mortgage payment of £900, utility bills of £200, and credit card payments of £300 remain the same.

Emma initially used her savings to cover the shortfall but these are now depleted. She has missed two mortgage payments and is getting increasingly worried calls from her credit card provider about missed minimum payments.

What is the primary cause of Emma’s financial difficulties?

Excessive spending

Correct Incorrect Correct answer

Income reduction

Correct Incorrect Correct answer

Poor budgeting

Correct Incorrect Correct answer

Rising interest rates

Correct Incorrect Correct answer

What immediate action should Emma take regarding her mortgage?

Ignore the missed payments

Correct Incorrect Correct answer

Move out of the property

Correct Incorrect Correct answer

Contact her mortgage provider

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Sell the property immediately

Correct Incorrect Correct answer

Which organisation would be most appropriate for Emma to approach for free debt advice?

Financial Conduct Authority

Correct Incorrect Correct answer

HM Revenue & Customs

Correct Incorrect Correct answer

StepChange Debt Charity

Correct Incorrect Correct answer

The Pensions Advisory Service

Correct Incorrect Correct answer

What might Emma’s mortgage lender do before considering repossession?

Apply extra charges

Correct Incorrect Correct answer

Come to her house

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Try to help find a solution

Correct Incorrect Correct answer

Write off the debt

Correct Incorrect Correct answer

Which factor would be most important for Emma’s long-term financial recovery?

Applying for additional credit cards

Correct Incorrect Correct answer

Declaration of bankruptcy

Correct Incorrect Correct answer

Return to full working hours

Correct Incorrect Correct answer

Selling all personal possessions

Correct Incorrect Correct answer

Case Study 4

Rebecca has received £10,000 from her grandparents and wants advice about what to do with it. She’s considering various sources of guidance and wants to make sure she makes an informed decision.

Which source would provide free, unbiased guidance to Rebecca?

A bank's financial adviser

Correct Incorrect Correct answer

Citizens Advice

Correct Incorrect Correct answer

An investment company

Correct Incorrect Correct answer

A social media influencer

Correct Incorrect Correct answer

Which type of financial adviser offers advice on all available products in the market?

Independent

Correct Incorrect Correct answer

Restricted

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Tied

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Bank-based

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When receiving advice from family and friends, what should Rebecca be most aware of?

Their advice is always incorrect

Correct Incorrect Correct answer

Their situation may be different from hers

Correct Incorrect Correct answer

They charge for advice

Correct Incorrect Correct answer

They are regulated by the FCA

Correct Incorrect Correct answer

What is the first step Rebecca should take if she receives poor financial advice from a regulated adviser?

Contact the Financial Ombudsman Service

Correct Incorrect Correct answer

Complain directly to the adviser's firm

Correct Incorrect Correct answer

Post about it online

Correct Incorrect Correct answer

Contact the Money Charity

Correct Incorrect Correct answer

Which organisation protects Rebecca if her financial provider goes bankrupt?

Citizens Advice

Correct Incorrect Correct answer

The Financial Services Compensation Scheme

Correct Incorrect Correct answer

The Money Charity

Correct Incorrect Correct answer

StepChange

Correct Incorrect Correct answer

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