1. Unit 2 Topic 4 #valleyifs @ Kahoot
Budgeting
Unit 2 Topic 4
Kahoot

2. Budgeting No. Question A B C Ans 1
When times are tough, the government and the Bank of England will take measures to try to stimulate the economy by:
reducing personal taxes and increasing interest rates
increasing personal taxes and reducing interest rates
reducing personal taxes and reducing interest rates 2
Which of these is an example of unearned income?
Interest on savings
Commission
Bonuses 3
Who sets the UK government’s budget?
Chancellor of the Exchequer
Prime Minister
Governor of the Bank of
England 4
What part of the year do the budget announcements now take place?
Spring
Autumn
Winter 5
In the 1950s and 1960s, borrowing was not generally seen as a good thing
True
False 6
What would be the most effective way to increase a budget surplus?
Decrease essential expenditure
Decrease mandatory expenditure
Decrease discretionary expenditure 7
List three ways to deal with a budget deficit. [3] 8
List three types of budgeting tools. [3] 9
What is net income? [1] 10
What is irresponsible borrowing? [1]

3. Answers No. Question A B C 1
When times are tough, the government and the Bank of England will take measures to try to stimulate the economy by:
reducing personal taxes and increasing interest rates
increasing personal taxes and reducing interest rates
reducing personal taxes and reducing interest rates 2
Which of these is an example of unearned income?
Interest on savings
Commission
Bonuses 3
Who sets the UK government’s budget?
Chancellor of the Exchequer
Prime Minister
Governor of the Bank of
England 4
What part of the year do the budget announcements now take place?
Spring
Autumn
Winter 5
In the 1950s and 1960s, borrowing was not generally seen as a good thing
True
False 6
What would be the most effective way to increase a budget surplus?
Decrease essential expenditure
Decrease mandatory expenditure
Decrease discretionary expenditure 7
List three ways to deal with a budget deficit. [3]
Marks awarded either from any three from the list below or valid alternatives:
Reducing bills as far as they can
Shopping around
Cutting back on discretionary spending
Reducing the cos of borrowing 8
List three types of budgeting tools. [3]
Online access
Mobile phone apps
Mini statements
Telephone banking services 9
What is net income? [1]
 Marks awarded for definition stated below or a valid alternative
the income we receive from our employer after tax and other deductions have been taken off [1] 10
What is irresponsible borrowing? [1]
Marks awarded for definition stated below
Borrowing without knowing the consequences
Answers

4. Task
Go to the IFS website and take a look at the topic test for topic 4 to further revision the main points. Make revision materials. 10 minutes

5. Key Terms for Topic 4 CLICK FOR TIMER
Cash Flow Forecasting Chancellor Of The Exchequer Gross Domestic Product Overdraft Payday Lender Self Employment Standing Order Unearned Income
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

6. Answers
Standing order – an electronic payment out of an account. In contrast to a direct debit, a standing order is used to make regular payments of the same amount.
Overdraft – a borrowing facility offered to bank account holders, which
allows them to be temporarily overdrawn up to an agreed amount.
Cash flow forecasting – predicting when money will move in and out of the account and identifying pressure points in a budget.
Chancellor of the Exchequer – the British Cabinet minister responsible for financial and economic matters, and in charge of the Treasury.
Payday lender – a company that provides short-term loans to people who need to borrow until their next pay day, when the loan should be paid back.
Unearned income – income from savings, investments, etc, that is not received for doing work.
Gross domestic product (GDP) – the total value of all goods produced and services provided by a country; in simple terms, what the country
has earned in the year.
Self-employment – people working for themselves and being able to
pick what work to do and when.

7. GCSE IFS Finance – Unit 2 Topic 4
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GCSE IFS Finance – Unit 2 Topic 4