LIBF Unit 1 UPDATED Test Questions And CORRECT Answers

Annual Budget an outline, given by the Chancellor of the Exchequer, of planned government expenditure for the next financial year. Annual equivalent rate (AER) the interest rate that would be paid on a savings account if you were to leave the money in the account for a full year. Annual percentage rate (APR) the interest that would be charged on a sum borrowed over one full year; used to measure the interest rate on loans, mortgages and credit cards; the calculation includes the fees that lenders charge automatically on the product, so that it gives a clear picture of the cost. Asset anything that a person owns that has a monetary value, such as a house, car, stereo, jewellery and so on. Austerity a government measure to reduce the amount of money it spends (usually reduced wages and benefits), resulting in difficult financial conditions for a population.