LIBF IFS UNIT 3 REVISION || 100% EXACT ANSWERS.
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.
arrears correct answers unpaid or overdue debts;
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.
attendance allowance correct answers Payable to those aged 65+ who have a long-term illness or
disability that means they cannot perform basic daily living activities or have limited mobility.
automatic credit transfer correct answers The method by which state benefits are paid directly
into a bank account.
automation correct answers Where a computer takes over a task previously carried out by a
person
bank liquidity correct answers The amounts of cash banks are required to hold in relation to the
amount they have in customer deposits
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 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 creditors
,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.
benefits cap correct answers A limit to the total amount in some benefits that working-age people
can receive, even if their full entitlement would otherwise be higher.
bitcoin correct answers A virtual currency
boomerang generation correct answers Young adults who leave home and then need to return
because they cannot afford to rent or buy a home of their own.
budget correct answers A plan of expected incomings and outgoings over a set time period such
as a month. Budget is also the term used for the governments annual spending plan.
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.
budget variance correct answers The difference between the expected and actual figures in
relation to income and expenditure.
capital requirements directive correct answers European Union legislation that specifies the
liquid assets that providers must hold to ensure they can meet demand if large numbers of
customers want to withdraw their money at the same time.
, carers allowance correct answers Paid to anyone over 16 who spends 35 hours per week or more
looking after someone who has substantial care needs.
cash-flow forecast correct answers A plan of expected incomings and outgoings over several
time periods, such as the next three months or a year.
cash flow modelling correct answers A software program that can predict the medium- and long-
term impact of different decisions and events on an individual's income, expenditure and savings
plans.
cash in hand correct answers Being paid in cash, rather than money being paid directly into a
person's bank account.
challenger bank correct answers Any new bank that challenges the dominance of the 'big five' (ie
Lloyds, HSBC, RBS, Barclays and Santander). Examples include Virgin Money, Metro Bank,
TSB, Williams and Glyn, the Post Office and Tesco Bank.
child benefit correct answers Money paid to parents or other people who are responsible for
bringing up a child.
child tax credit correct answers A benefit paid to people who are in low paid work, to help with
the costs of bringing up a child
commodity correct answers Goods that share the same characteristics wherever they are
produced and whoever produces them. For example raw materials such as iron ore, gold and
silver or agricultural produce like wheat and barley
Competitions & Markets Authority (CMA) correct answers The body responsible for
strengthening business competition and preventing and reducing anti-competitive activities
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.
arrears correct answers unpaid or overdue debts;
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.
attendance allowance correct answers Payable to those aged 65+ who have a long-term illness or
disability that means they cannot perform basic daily living activities or have limited mobility.
automatic credit transfer correct answers The method by which state benefits are paid directly
into a bank account.
automation correct answers Where a computer takes over a task previously carried out by a
person
bank liquidity correct answers The amounts of cash banks are required to hold in relation to the
amount they have in customer deposits
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 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 creditors
,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.
benefits cap correct answers A limit to the total amount in some benefits that working-age people
can receive, even if their full entitlement would otherwise be higher.
bitcoin correct answers A virtual currency
boomerang generation correct answers Young adults who leave home and then need to return
because they cannot afford to rent or buy a home of their own.
budget correct answers A plan of expected incomings and outgoings over a set time period such
as a month. Budget is also the term used for the governments annual spending plan.
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.
budget variance correct answers The difference between the expected and actual figures in
relation to income and expenditure.
capital requirements directive correct answers European Union legislation that specifies the
liquid assets that providers must hold to ensure they can meet demand if large numbers of
customers want to withdraw their money at the same time.
, carers allowance correct answers Paid to anyone over 16 who spends 35 hours per week or more
looking after someone who has substantial care needs.
cash-flow forecast correct answers A plan of expected incomings and outgoings over several
time periods, such as the next three months or a year.
cash flow modelling correct answers A software program that can predict the medium- and long-
term impact of different decisions and events on an individual's income, expenditure and savings
plans.
cash in hand correct answers Being paid in cash, rather than money being paid directly into a
person's bank account.
challenger bank correct answers Any new bank that challenges the dominance of the 'big five' (ie
Lloyds, HSBC, RBS, Barclays and Santander). Examples include Virgin Money, Metro Bank,
TSB, Williams and Glyn, the Post Office and Tesco Bank.
child benefit correct answers Money paid to parents or other people who are responsible for
bringing up a child.
child tax credit correct answers A benefit paid to people who are in low paid work, to help with
the costs of bringing up a child
commodity correct answers Goods that share the same characteristics wherever they are
produced and whoever produces them. For example raw materials such as iron ore, gold and
silver or agricultural produce like wheat and barley
Competitions & Markets Authority (CMA) correct answers The body responsible for
strengthening business competition and preventing and reducing anti-competitive activities
