Exam Warm Up

Question 1

Give 3 sources of independent financial advice

Answer 1

IFA(independent financial advisor)
Citizens advice
Debt counsellors

Question 2

Give some features of premium bonds

Answer 2

Monthly prizes
No interest
Can invest up to 50,000

Question 3

List some types of savings account

Answer 3

ISA(individual savings account)
Deposit account

Question 4

List some features of pay day loans

Answer 4

Interest charges are high
Short repayment

Question 5

Explain an advantage of using price comparison websites when buying insurance(2 marks)

Answer 5

The consumer is able to see multiple insurance prices. Therefore they save money and time

Question 6

Explain one benefit of having a good credit rating(2 marks)

Answer 6

Good credit rating helps individuals helps individuals access better interest because they are seen as less risky so the overall cost of borrowing money is reduced.

Question 7

Explain two benefits of paying bills by direct debit

Answer 7

Improved credit rating as ensure bills are always paid on time so helps maintain a good credit rating
possible discounts as some business offer discounts on the price paid if a directly debit is set up to pay each month

Question 8

Explain two financial implications of reaching old age

Answer 8

Higher spending on health as more old people may find that expenses on healthcare rise such as medications and hearing aids.
Lower monthly income as most old people usually retire so they are less likely to be earning from regular work, reducing their monthly household income

Question 9

How to answer six marker

Answer 9

Make sure to use them stem of question and case study/scenario. This is your application
Argument needs to be balanced
You dont need a decision
Make sure your response is applied to the individual
Consider the life stage of individual
What is her/his financial situation and need

Question 11

How to answer 12 marker

Answer 11

First, deal with the worst(least suitable) options, explaining why they are not suitable, 1-2 sentences on these will do
Then for each of the two main remaining options
Comment on the main benefits of the options(comparing data and features)
Comment on the drawbacks of the option
Finally: state which option you are recommending, and why, using the DJI method