LIBF Unit 3 TOP Test Questions And CORRECT Answers

Bank rate The interest rate that the Bank of England uses when it lends money to other banks. Financial services providers take account of the Bank rate when they decide how to set interest rates on their own products. Cash flow forecast A plan of expected incomings and outgoings over several time periods, such as the next three months or a year. Cash flow modelling A software program that can predict the medium- and long-term impact of different decisions and events on an individual's income, expenditure and savings plans. Credit union A mutual organisation (that is, owned by its members) that provides a range of financial products to members, eg savings accounts and personal loans. Flexible financial planning Making financial plans to cover wants, needs and aspirations over the medium to long term, which make allowance for unexpected expenses and changes in circumstance (eg by including saving and insurance).