key words topic 4

Question 1

Budget variance

Answer 1

The difference between the expected and actual figures in relation to income and expenditure.

Question 2

Interlocking time periods

Answer 2

Overlapping time periods, eg the time periods over which short-, medium- and long-term budgets are drawn up.

Question 3

Long-term financial planning

Answer 3

Financial planning for, typically, a period of more than ten years.

Question 4

Online budget planner

Answer 4

An online tool that allows the user to easily monitor actual income and spending and compare the figures with their plans on a daily basis.

Question 5

Remortgage

Answer 5

The replacement of an existing mortgage with a new one, either to save money with a lower rate or to borrow an additional sum.