Lesson T4.2.1

T4.2.1 Managing risk Quiz: KS3 Citizenship, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson T4.2.1, Managing risk: 20 multiple choice questions for the KS3 Citizenship (National Curriculum), Unit 4: Money and risk, written with Revision Ninja.

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The 20 questions

  1. What is a risk?

    • The chance that something harmful or unwanted might happen
    • A type of insurance policy that covers the cost of a range of losses
    • A guaranteed outcome that can be planned for in advance each year
    • A fixed interest rate that is set by the bank for each loan

  2. Which of these is a way to manage risk?

    • Making the risk bigger on purpose so that it becomes more exciting
    • Avoiding the risk entirely by not taking part in the activity
    • Ignoring the risk and hoping it goes away on its own over time
    • Refusing to think about possible outcomes of the activity in advance

  3. What is insurance?

    • A savings account that pays interest on the money held by the bank
    • A loan from a bank for a holiday that must be paid back over several years
    • A guarantee that prices will not rise over the course of the year
    • A way of transferring the financial risk of a loss to an insurer in return for a premium

  4. What is a premium in insurance?

    • The interest on a loan that is charged by the lender each month
    • The regular payment made to keep an insurance policy in force
    • The fine for breaking a law, which is set by the court each time
    • The amount paid out after a claim is made on the policy

  5. What is an excess in an insurance policy?

    • The amount the policyholder pays towards a claim before insurance pays the rest
    • The number of years a policy lasts before it must be renewed
    • The profit an insurer makes on a policy over its life
    • A refund paid when a policy ends after the full term has been completed

  6. Why might a person take out home contents insurance?

    • To guarantee a higher income for the household in the future
    • To cover losses such as theft or fire damage to belongings
    • To avoid paying council tax on the home and its contents
    • To become a homeowner by taking out a mortgage with the policy

  7. Which of these is a way to reduce a risk?

    • Ignoring safety advice given by the fire service and the police
    • Leaving valuables in plain view on the window sill of the house
    • Crossing a busy road without looking for traffic in either direction
    • Fitting smoke alarms and following safety rules

  8. A pupil cycles without a helmet. Which risk management approach would reduce the risk of injury most directly?

    • Cycling faster to avoid danger
    • Cycling only at night
    • Ignoring the risk because nothing has happened yet
    • Wearing a properly fitted helmet

  9. What is meant by 'risk assessment'?

    • Calculating the amount of tax to be paid on a set of earnings
    • Identifying hazards, judging how likely harm is, and deciding how to control it
    • Ranking people by how risky they are to the community around them
    • Guessing the outcome of a game to decide whether to take part in it

  10. Which of these is an example of transferring risk?

    • Carrying out a risk assessment before starting a project in school
    • Deciding not to insure a valuable item that is kept at home
    • Buying insurance so that an insurer pays for a loss
    • Keeping a safe distance from danger on the road and in the playground

  11. Why do people sometimes take risks?

    • They always want to lose money on the things they buy each year
    • They are required to take all risks by law, whatever the outcome
    • They cannot tell the difference between safe and unsafe activities in daily life
    • They may weigh up potential rewards and decide the benefits are worth the chance of harm

  12. Which of these best describes a financial risk?

    • A chance to win a prize at a school fair with a small entry fee
    • The possibility of losing money, for example through an unsuccessful investment
    • An exam mark that is higher than expected after the marking is checked
    • A type of food allergy that can cause a reaction after eating

  13. Why might a person spread their savings across different types of investment?

    • To avoid paying any tax on the profits from their savings each year
    • To reduce the impact of one investment performing badly
    • To guarantee that prices stop rising in the economy for good
    • To make sure they lose money evenly across every investment they hold

  14. What is a pension?

    • A fee paid to a bank for an account that is opened for a child
    • A tax on people who own houses and land in the local area
    • A payment made for one year of study at a college or university
    • Money saved during working life to provide income in retirement

  15. Why is it important to start saving for a pension early?

    • Pensions are only available to people over 80
    • Pensions cannot be paid after retirement
    • Money has more time to grow through interest and returns
    • Starting early means paying more tax

  16. What is credit?

    • A reward for saving money in a regular account each month
    • Money borrowed that must be repaid, usually with interest
    • Money given away as a gift to a relative on a birthday
    • A tax refund from the government after the end of the tax year

  17. What is a common risk of borrowing money?

    • Borrowing means that no repayment is needed once the loan is taken out
    • Borrowing always makes money grow faster than it would otherwise
    • Borrowing removes all financial risk from a household's budget
    • Debt can grow quickly if interest and repayments are not managed

  18. Which of these is an example of an everyday risk to personal finances?

    • Winning a school raffle that has a prize of a small amount of money
    • Getting a new pair of shoes from a sale in the local shopping centre
    • Losing a job and therefore losing income for the household
    • Receiving a birthday card with a gift voucher from a relative

  19. Why do banks and lenders assess a person's ability to repay before lending?

    • To reduce the risk that the loan will not be repaid
    • To avoid making any profit
    • To prevent people from saving money
    • To make sure they lend only to government bodies

  20. What is the best way to manage the risk of an unexpected expense?

    • Spending all income each month
    • Keeping an emergency fund and budgeting for surprises
    • Borrowing as much as possible without a plan
    • Ignoring the possibility of an expense

All KS3 Citizenship quizzes