Topic 1

Question 1

The rapid increase in cases from 2004 on new individual insolvency cases is considered to be related to ?

Answer 1

Households taking on higher levels of debt in early 2000s

Question 2

Government agencies

Answer 2

Moneyhelper (formerly known as money advice service )

Question 3

Non government agencies

Answer 3

Citizens advice, stepchange debt charit, the money charity , pay plan and money advice trusts national debt line

Question 4

Flexible financial plan is sometimes known as ?

Answer 4

Dynamic financial plan

Question 5

What to use for short term straightforward cash flow

Answer 5

By hand or on computer using a basic spreadsheet program

Question 6

What to use for more complicated medium to long term planning

Answer 6

Cash flow modelling software programs

Question 7

Contingency planning

Answer 7

Attempting to plan for unforeseen events when making financial plans

Question 8

Events that might arise contingency planning

1.Favourable events

Answer 8

1 . Favourable events
Getting job
Being give salary increase promotion at work
Winning the lottery
Winning money on the lottery
Increase in value of a asset
Paying off personal loan

Question 9

2007-2008 financial crisis contingencies in financial plans
Business and government
1. What happened t investments during financial crisis

2.what did millions of people pay into and lost a lot of money (clue scheme )

What’s the dates for London stock exchange fall and what’s the name of the index that cased this

Answer 9

1. People lost money when their investments fell in value

2.millions paying into money-purchase pension schemes they were badly effected by falling share prices

3. The FTSE 100 a index of the share prices of the top 100 COMPANIES TRADED ON LONDON STOCK EXCHANGE fell from 6730 IN JUNE 2007 down to 3512 by MARCH 2009 fall of 50%

Question 10

1.What happened in the five years following financial crisis

2.What did the government do to fix the financial crisis

Answer 10

1. The real value of wages was squeezed by price inflation rose to 5 PERCENT IN SECOND HAF OF 2011 while growth wages were bellow 2 percent a year
2. CREDIT CRUNCH : banks tightened their lending policies know. As the credit crunch this means it became more difficult for businesses and first time buyers to get a loan .

Question 11

What are AUSTERITY MEASURES

Answer 11

The government of most western countries took AUSTERITY MEASURES this is LARGE CUTS PUBLIC SPENDING IN ORDER TO CUT GOVERNMENT DEBT

Question 12

Savings account pay there customers mainly interest but in addition to bank and building society savings account and tax free individual savings accounts (isa) all which typically pay variable rates of interest

Question 13

What does the borrower sign allowing the lender to take possession of the house in case of a failed mortgage

Answer 13

Mortgage deed

Question 14

Log book loans are for who

Answer 14

Car owners they give the logbook and the lot certificate to lender for security for instant loan

Question 15

IPI OR ALSO KNOW AS PHI

Answer 15

income protection insurance also known as permanent health insurance,provides monthly salary if unable to work as result of illness or disability

Question 16

ASU

Answer 16

Accident, sickness and unemployment insurance. Pays out income for limited time usually 12 or 24 months

Question 17

CIC

Answer 17

Critical illness cover a lump sum is paid out to protect you from financial consequences of suffering illness such as cancer , stroke heart attack or multiple sclerosis

Question 18

Shares and bonds are bought how by most investors

Answer 18

Collective investment products such as unit trusts, investment trusts and open-ended investment companies