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Subjects · Leaving Cert Business

Leaving Cert Business: Household finance

How often Household finance comes up on the Business papers, every year it was asked, and questions to try.

HL Asked on 2 of the last 10 Higher Level papers, most recently in 2024.

OL Asked on 2 of the last 10 Ordinary Level papers, most recently in 2024.

June 2027 is the first exam on the new Business course. These come from the 2016–2026 papers, so read them as a guide.

Household finance, Higher Level(6 marks)

Quick ones on Household finance.

(a)The AER on a savings account shows…
  1. The tax deducted from the interest on the account
  2. The yearly interest earned, including interest on interest
  3. The fee charged to open the account
(b)The APR on a loan shows…
  1. The lender's profit on the loan
  2. Only the monthly repayment, without any charges
  3. The total yearly cost of borrowing, including charges
(c)Spreading savings across different investments to reduce risk is…
  1. Diversification
  2. Inflation
  3. Speculation
Show the answers

(a) The yearly interest earned, including interest on interest

(b) The total yearly cost of borrowing, including charges

(c) Diversification

Your turn: Higher Level questions on Household finance.

Higher Level

Asked on 2 of the last 10 Higher Level papers, most recently in 2024.

Every paper, year by year

YearWhere it came up
2026Not asked
2025Not asked
2024Section 3 Q6
2023Not asked
2022Section 3 Q6
2021Not asked
2019Not asked
2018Not asked
2017Not asked
2016Not asked

Links open the State Examinations Commission’s paper for that year.

More Household finance questions

Household finance, 2 marks

When saving, inflation matters because…

  1. It always raises the interest rate paid on savings accounts
  2. It reduces the tax charged on interest from savings
  3. If it is higher than the interest rate, savings lose buying power
Show the answer

If it is higher than the interest rate, savings lose buying power

If prices rise 4% and savings earn 2%, the money buys less at the end of the year than at the start.

Household finance, 2 marks

Risk tolerance is…

  1. The bank's opening hours for customers
  2. How much possible loss a person is willing and able to accept
  3. The interest rate a lender charges on a personal loan
Show the answer

How much possible loss a person is willing and able to accept

A young saver investing for decades can usually tolerate more risk than someone who needs the money next year.

Household finance, 2 marks

A text that pretends to be from your bank and asks you to click a link is…

  1. Smishing
  2. A direct debit
  3. Contactless payment
Show the answer

Smishing

Smishing is phishing by SMS. Never click links in unexpected texts; contact the bank using its official number.

Ordinary Level

Asked on 2 of the last 10 Ordinary Level papers, most recently in 2024.

Every paper, year by year

YearWhere it came up
2026Not asked
2025Not asked
2024Section 1 Q1, Section 2 Q6
2023Not asked
2022Not asked
2021Section 1 Q1
2019Not asked
2018Not asked
2017Not asked
2016Not asked

Links open the State Examinations Commission’s paper for that year.

More Household finance questions

Household finance, 2 marks

AER stands for…

  1. Average earnings ratio
  2. Annual expense report
  3. Annual equivalent rate
Show the answer

Annual equivalent rate

AER shows the interest a savings account pays over a year, so you can compare accounts.

Household finance, 2 marks

APR stands for…

  1. Annual payment record
  2. Annual percentage rate
  3. Average price rise
Show the answer

Annual percentage rate

APR shows the yearly cost of a loan, including charges. Lower is cheaper.

Household finance, 2 marks

When choosing a savings account, a higher AER means…

  1. More interest earned
  2. Less interest earned
  3. Higher fees
Show the answer

More interest earned

A higher AER means your savings grow faster, as long as the other terms suit you.

Other Business topics

All of Leaving Cert Business