CEFS Unit 1 - All Topics (1-12) Questions with Complete Solutions (Latest 2025) Aspirations - Correct Answers ✅Things or experiences that people would like to have in the future, for example owning a home instead of renting, having a luxury holiday or buying a sports car.ATM - Correct Answers ✅Automated teller machine, also known as a cash machine Balance - Correct Answers ✅Income minus expenses.Budget - Correct Answers ✅A plan of expected incomings and outgoings over a set time period such as a month. The Budget is also the term given to the government's spending plan, which the Chancellor (see below) sets out in the House of Commons.Budget balance - Correct Answers ✅Total income minus
total expenditure: a person's net financial situation.
Budget deficit - Correct Answers ✅A situation in which outgoings exceed income.Budget surplus - Correct Answers ✅A sum of money available once all the essential expenditure in a given period, eg a month, has been made. 1 / 4
CEFS Unit 1 - All Topics (1-12) Questions with Complete Solutions (Latest 2025) Cash flow forecast - Correct Answers ✅A plan of expected incomings and outgoings over several time periods, such as the next three months.Chancellor of the Exchequer - Correct Answers ✅The Chancellor of the Exchequer, the British Cabinet minister responsible for financial and economic matters and in charge of the Treasury Consumer Prices Index (CPI) - Correct Answers ✅One of the means the government uses to measure inflation. It is calculated by checking the price of a representative sample of goods on a monthly basis - this enables statisticians to measure how much prices are rising or falling. See also retail prices index (below).Credit history - Correct Answers ✅A record of money borrowed and repaid by an individual. These records are held by credit reference agencies and providers will check the individual's credit history when a prospective customer applies for a borrowing product.Current account - Correct Answers ✅Bank or building society accounts where people can store their money in the form of electronic balances and withdraw it to make payments. 2 / 4
CEFS Unit 1 - All Topics (1-12) Questions with Complete Solutions (Latest 2025) Discretionary expenditure - Correct Answers ✅Voluntary spending on products and services that people want now, and savings towards items they aspire to buy in the future.Dividend - Correct Answers ✅A payment of profits from a company to its shareholders, often at twice-yearly intervals, either as cash or (depending on the plan) as further shares or reacquisition of shares.Duty - Correct Answers ✅The tax paid on certain items, including fuel, cigarettes and alcohol.Essential expenditure - Correct Answers ✅Spending on items required to live, eg rent or mortgage repayments, food and drink, water supplier, gas and electricity.Income - Correct Answers ✅Earnings, savings and interest payments received within a certain timeframe.Income tax - Correct Answers ✅Tax paid on earnings from employment, self-employment and interest on savings.Inflation - Correct Answers ✅A rise in prices, which means that the purchasing power of money falls. 3 / 4
CEFS Unit 1 - All Topics (1-12) Questions with Complete Solutions (Latest 2025) Insurance - Correct Answers ✅Products that give financial protection against certain events. For example, someone who has travel insurance might be able to claim back the cost of a holiday if they have to cancel through illness.Investments - Correct Answers ✅Money paid into financial products; the aim is that the value of the product will grow over time and so the person will eventually receive back more money than they paid in. Investments are a way of saving over the medium or long term.Mandatory expenditure - Correct Answers ✅Compulsory outgoings; they do not necessarily apply to everyone but if they do apply, they must be paid.Mortgage - Correct Answers ✅A loan taken out to pay for a property, usually over a long term such as 25 years National Insurance
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