LIBF- CeFS UNIT 1 (FCIS) Questions with Complete Solutions Acceptable - Correct Answers ✅One of the key features of money - to be widely accepted.Administration order - Correct Answers ✅A repayment plan arranged by county courts in England, Wales and Northern Ireland for people with less than £5,000 in unsecured debt and at least one county court judgment (CCJ) against them.They apply to the court to have an administration order issued, then pay what the court decides they can afford directly to the court each month, and the court makes repayments to their creditors.AER - Correct Answers ✅Annual equivalent rate is the interest that will be earned on the money in one year and takes into account how often the provider pays the interest (for example, monthly or annually), the effect of compounding the interest and any fees and charges.APR - Correct Answers ✅Annual percentage rate - the total cost of borrowing over one year, including the interest charged and any fees.aspirations - Correct Answers ✅Things or experiences that people would like to have in the future, for example owning a home instead of renting, having a luxury holiday or buying a sports car. 1 / 4
LIBF- CeFS UNIT 1 (FCIS) Questions with Complete Solutions assets - Correct Answers ✅Things that a person or a business owns. For a person their assets might include property, jewellery or financial products such as company shares.ATM - Correct Answers ✅Automated teller machine, also known as a cash machine Bacs - Correct Answers ✅The central payment system used to process different types of electronic payment.Balance - Correct Answers ✅income minus expenses Balance Transfer - Correct Answers ✅Moving the balance (total amount owed) on a card from one card provider to another.banker's draft - Correct Answers ✅A banker's draft is similar to a cheque but the payment is signed and guaranteed by the financial services provider that issues it, rather than by an individual. Banker's drafts are used for paying large sums of money.Bank rate - Correct Answers ✅The interest rate that the Bank of England uses when it lends money to other banks.Financial services providers take account of the Bank rate 2 / 4
LIBF- CeFS UNIT 1 (FCIS) Questions with Complete Solutions when they decide how to set interest rates on their own products.Bankruptcy - Correct Answers ✅A situation in which a person cannot pay their debts and is the subject of a court order that shares out their assets between their creditors.barter - Correct Answers ✅To exchange goods and services for other goods and services without using money.basic bank account - Correct Answers ✅A current account that allows people to store their money as an electronic balance and make payments by direct debit, standing order, prepaid cash card or by withdrawing cash. There is no debit card, cheque book or overdraft facility on this type of account.benefit - Correct Answers ✅A government payment made to individuals who meet specific conditions to help them meet their living expenses. For example, people who are unemployed, unable to work because they care for a disabled person, or have a disability may be entitled to benefits if they meet the criteria.budget - Correct Answers ✅A plan of expected incomings and outgoings over a set time period such as a month. The Budget is also the term given to the government's spending 3 / 4
LIBF- CeFS UNIT 1 (FCIS) Questions with Complete Solutions plan, which the Chancellor sets out in the House of Commons.Budget balance - Correct Answers ✅Total income minus
total expenditure: a person's net financial situation.
budget deficit - Correct Answers ✅A situation in which outgoings exceed income.budget surplus - Correct Answers ✅A sum of money available once all the essential expenditure in a given period, eg a month, has been made.Capital - Correct Answers ✅The money or other assets owned by an individual or a business. In the case of a financial services provider, it refers to the funds provided by the shareholders, not deposits from customers.Card verification value (CVV) - Correct Answers ✅Three numbers on the back of a credit or debit card. These are a security measure designed to prevent fraudulent use of the card by someone other than the cardholder.Cashback - Correct Answers ✅A service offered by some retailers when customers pay by card. The retailer gives the customer cash and debits the amount of cash handed over from the customer's payment card.
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