Libf ifs Unit 3 Revision Exam Questions With
Complete Answers
administration order - ANSWER 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 - ANSWER unpaid or overdue debts;
assets - ANSWER 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 - ANSWER 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 - ANSWER The method by which state benefits are paid directly into
a bank account.
automation - ANSWER Where a computer takes over a task previously carried out by a person
bank liquidity - ANSWER The amounts of cash banks are required to hold in relation to the
,amount they have in customer deposits
bank rate - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER A virtual currency
boomerang generation - ANSWER Young adults who leave home and then need to return
because they cannot afford to rent or buy a home of their own.
budget - ANSWER 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 - ANSWER Total income minus total expenditure: a person's net financial
situation.
budget deficit - ANSWER A situation in which outgoings exceed income
budget surplus - ANSWER A sum of money available once all the essential expenditure in a
given period, eg a month, has been made.
budget variance - ANSWER The difference between the expected and actual figures in relation
to income and expenditure.
capital requirements directive - ANSWER 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 - ANSWER Paid to anyone over 16 who spends 35 hours per week or more
looking after someone who has substantial care needs.
cash-flow forecast - ANSWER A plan of expected incomings and outgoings over several time
periods, such as the next three months or a year.
cash flow modelling - ANSWER A software program that can predict the medium- and
Complete Answers
administration order - ANSWER 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 - ANSWER unpaid or overdue debts;
assets - ANSWER 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 - ANSWER 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 - ANSWER The method by which state benefits are paid directly into
a bank account.
automation - ANSWER Where a computer takes over a task previously carried out by a person
bank liquidity - ANSWER The amounts of cash banks are required to hold in relation to the
,amount they have in customer deposits
bank rate - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER A virtual currency
boomerang generation - ANSWER Young adults who leave home and then need to return
because they cannot afford to rent or buy a home of their own.
budget - ANSWER 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 - ANSWER Total income minus total expenditure: a person's net financial
situation.
budget deficit - ANSWER A situation in which outgoings exceed income
budget surplus - ANSWER A sum of money available once all the essential expenditure in a
given period, eg a month, has been made.
budget variance - ANSWER The difference between the expected and actual figures in relation
to income and expenditure.
capital requirements directive - ANSWER 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 - ANSWER Paid to anyone over 16 who spends 35 hours per week or more
looking after someone who has substantial care needs.
cash-flow forecast - ANSWER A plan of expected incomings and outgoings over several time
periods, such as the next three months or a year.
cash flow modelling - ANSWER A software program that can predict the medium- and
