LIBF QUESTIONS AND ANSWERS
A budget is a personal financial plan that usually covers a period of: Select one: A. four weeks. B. one month. C. three months. D. six months. - Answer- b The main purpose of a budget, as part of a financial plan, is to: Select one: A. avoid getting into financial difficulties. B. discover the best deals in the marketplace. C. ensure that there is always a positive balance. D. guarantee that there will be no financial difficulties. - Answer- a Opportunity cost can be defined as the: Select one: A. cost of something in terms of what has to be given up to achieve it. B. cost of something in terms of what it would have cost without any inflation. C. difference in cost between something bought in the UK and the same thing bought in another European country. D. difference in cost between something bought new and something bought second-hand. - Answer- a Which of the following financial products is the most appropriate for someone to use as 'rainy day' money? Select one: A. Authorised overdraft. B. Instant access savings account. C. Notice savings account. D. Personal loan. - Answer- b Gethin and Nia are both in their twenties and would like to start planning for their retirement. At what age should they start putting money aside towards their retirement planning? Select one: A. 30. B. 40. C. 50. D. As soon as possible - Answer- d When considering returns in savings accounts, the 'real' return takes into account the interest rate and: Select one:
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- May 6, 2023
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