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Borrowing and Investing 0001   Easy

 
 
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1. In the UK, what are the two types of ISA?
 
Big and small
Little and large
Macro and micro
Maxi and mini

Mini ISA has separate accounts for cash and stocks & shares, maxi has one
 

 
2. Which Stock Exchange's activity is reflected by the Nikkei index?
 
Hong Kong
Manila
Singapore
Tokyo

Hong Kong's activity is reflected by the Hang Seng index
 

 
3. What sort of long-term loan is taken out to finance a house purchase?
 
Bridging Loan
Debenture
Endowment
Mortgage
 

 
4. What is essential before obtaining an overdraft?
 
Cheque book
Credit card
Student union card
Valid bank account
 

 
5. How are shareholders rewarded for their investment?
 
Bonus
Dividend
Interest-free loan
Salary
 

 
6. What sort of loan relies purely upon the borrower's promise to repay it?
 
Fixed
Flexible
Soft
Unsecured

Interest rates on unsecured loans are usually high
 

 
7. How do lenders assess the level of risk attached to a borrower?
 
Credit score
Demographic group
Eye colour
Postcode
 

 
8. What are "Loan sharks"?
 
Building societies
Fishmongers
Pawnbrokers
Unlicensed lenders
 

 
9. What name is given to a mutual financial organisation run by its members?
 
Credit union
Debt union
Investment union
Trade union
 

 
10. What type of overdraft has not been agreed in advance with the bank?
 
Illegal
Illicit
Unauthorised
Unsupported

An unauthorised overdraft may lead to cheques being bounced
 

 
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