Test your knowledge and take our quiz
Easy
Easy Section
1. What is a budget?
A) A financial plan for spending and saving
B) A type of bank account
C) A loan from the government
D) A credit score tracking tool
2. What does APR stand for in financial terms?
A) Annual Payment Rate
B) Average Percentage Return
C) Annual Percentage Rate
D) Adjustable Pension Rate
3. Which of the following is a passive income source?
A) Salary from a full-time job
B) Stock dividends
C) Working overtime
D) Paid freelance projects
Medium Section
4. What is the purpose of an emergency fund?
A) To invest in stocks
B) To cover unexpected expenses
C) To pay monthly bills
D) To buy luxury items
5. What is the 50/30/20 rule in budgeting?
A) 50% on wants, 30% on savings, 20% on needs
B) 50% on savings, 30% on needs, 20% on wants
C) 50% on needs, 30% on wants, 20% on savings
D) 50% on wants, 30% on needs, 20% on savings
6. What is compound interest?
A) Interest calculated on the initial principal only
B) Interest earned on both the principal and previous interest
C) Interest that decreases over time
D) Interest that can be refunded
Hard Section
7. What is the difference between ETFs and mutual funds?
A) ETFs trade like stocks, mutual funds trade once a day
B) ETFs have higher fees than mutual funds
C) Mutual funds are only available for retirement accounts
D) ETFs only invest in bonds
8. What is the main advantage of using an ISA (Individual Savings Account) in the UK?
A) Higher interest rates than regular savings accounts
B) Tax-free savings and investments
C) Guaranteed returns on investments
D) Protection against inflation
11. What is the Pension Lifetime Allowance (LTA) in the UK, and why does it matter?
A) The maximum amount you can withdraw from a pension annually
B) The total amount you can save in a pension before extra tax charges apply
C) The minimum contribution required for employer pensions
D) The fixed state pension amount
Answers
1 - A) A financial plan for spending and saving
2 - C) Annual Percentage Rate
3 - B) Stock dividends
4 - B) To cover unexpected expenses
5 - C) 50% on needs, 30% on wants, 20% on savings
6 - B) Interest earned on both the principal and previous interest
7 - A) ETFs trade like stocks, mutual funds trade once a day
8 - B) Tax-free savings and investments
9 - B) The total amount you can save in a pension before extra tax charges apply