Which of the following families would be most affected by an 8 year period of high inflation?
A couple in their 30s with two children
A couple in their 50s saving for retirement
A couple in their 20s with both of them working
A couple in their 60s living on fixed retirement income
You have a savings account in a bank. Which of the following statements would be correct concerning the interest that you would earn on this account?
VAT tax may be charged on the interest that you earn.
Until you reach your 18th birthday you can‘t earn any interest.
Earnings from the savings account interest may not be taxed.
Income tax may be charged on the interest if your income is high enough.
You deposit £10,000 in the bank for two years. If the annual interest rate is 10% and the interest is calculated from your current balance once a year, how much you will have in your account in two years?
You will have £11,000
You will have £12,000
You will have £12,100
You will have £12,200
The bank offered you 3% APR for a savings account. If the expected rate of the inflation is 5%, how much purchasing power (the amount you can buy with your money) will your savings have after 12 months?
More than today
The same as today
Less than today
You want to put your savings into a two year term deposit. Which of the following offers is preferable?
An offer with an annual interest rate of 5 %
An offer with a total interest rate of 9.5 % for two years
They are the same
Saving in a bank account usually means that your money grows and is safe. If:
Inflation rate is lower than the interest rate you receive from the bank and the amount being saved is covered by the Financial Services Compensation Scheme (FSCS)
Inflation rate is higher than the interest rate you receive from the bank and the amount being saved is covered by the Financial Services Compensation Scheme (FSCS)
Inflation rate is higher than the interest rate you receive from the bank and the amount being saved is covered by the Financial Services Agency (FSA)