Planning for now and for the future Unit 2 Topic 3 #valleyifs @ Kahoot

Planning for now and for the future Question A B C Ans 1 In financial planning a period of between one and twelve months is known as: Short term Medium term Long term 2 A basic-rate taxpayer receiving savings interest of £1750 would pay total tax of: Nil £50 £150 3 Which of these is a 16-year-old is not permitted to open? Cash ISA Stocks and Shares ISA Junior ISA 4 If the objective is over the shorter term, it is particularly important to have instant access to the money. True False 5 Which of these is not a financial regulator? PRA FCA ONS 6 What is the personal savings allowance limit? £100 £1000 £10,000 7 What is Prudential Regulation Authority? [2] 8 Describe the similarities/differences between the ‘Cash ISA’ and the ‘Stocks and shares ISAs’ [2] 9 Explain the main points of the Islamic Sharia law [3] 10 What is a notice account? [1]

Answers No. Question A B C 1 In financial planning a period of between one and twelve months is known as: Short term Medium term Long term 2 A basic-rate taxpayer receiving savings interest of £1750 would pay total tax of: Nil £50 £150 3 Which of these is a 16-year-old is not permitted to open? Cash ISA Stocks and Shares ISA Junior ISA 4 If the objective is over the shorter term, it is particularly important to have instant access to the money. True False 5 Which of these is not a financial regulator? PRA FCA ONS 6 What is the personal savings allowance limit? £100 £1000 £10,000 7 What is Prudential Regulation Authority? [2] Marks awarded for points stated below or valid alternatives the UK regulator responsible for making sure that financial firms are authorised to operate in the UK [1] and are financially sound.[1] 8 Describe the similarities/differences between the ‘Cash ISA’ and the ‘Stocks and shares ISAs’ [2] One point from each list below: ‘Stocks and Shares ISA’ = The investment can be in a range of stocks and shares and investment funds. All income and profits are tax-free. ‘Cash ISA’ = It is a deposit account that is offered by the same organisations that provide the savings account. All interest is paid tax-free and it does not have to be declared as income. 9 Explain the main points of the Islamic Sharia law [3] Money is seen purely as a medium of exchange [1] Cannot pay/receive interest on money [1] It does allow a person to make a profit but in a ethical way [1] 10 What is a notice account? [1] Marks awarded for definition stated below or valid alternative a savings account that requires the account holder to give notice if they wish to take money out [1] Answers

Key Terms for Topic 3 CLICK FOR TIMER Aspiration Bond Credit Union Deposit Financial Services Compensation Scheme Insolvency Lifetime ISA Starting Rate On your whiteboards or books, write down a definitions for these key terms. EXT: Can you give examples of each? 5 minutes CLICK FOR TIMER

Answers Lifetime ISA – a form of ISA available to people aged between 18 and 40 that lets them save up to £4,000 a year and receive a 25% government bonus. Deposit – cash in a savings account Aspiration – something a person would like or would aspire to, rather than something that they absolutely need. Bond – a savings account that offers a fixed rate of interest for a fixed term. Financial Services Compensation Scheme (FSCS) – a scheme that provides compensation to customers if an authorised UK financial firm becomes insolvent. Starting rate – applies to savings interest. Up to £5,000 of savings interest is tax free for those with relatively low income. Credit union – a financial co-operative run by, and for the benefit of, its members. Insolvency – when a company cannot afford to pay its debts; similar to ‘bankruptcy’ for an individual.

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