BTEC National Level 3 Business (Personal and Business Finance) | Exam Questions and Answers Verified Solutions Latest Update

BTEC National Level 3 Business (Personal and
Business Finance) | Exam Questions and Answers
Verified Solutions Latest Update
Question 1.
Mortgage
Correct Answer: When the bank lends you money but you have to pay it back plus
the interest on the mortgage

Question 2.
Cash
Correct Answer: Money that is physical in either paper or coins

Question 3.
Cheque
Correct Answer: A written, dated, and signed instrument that contains an
unconditional order from the drawer that directs
a bank to pay a definite sum of money to a payee.

Question 4.
Debit Card
Correct Answer: Money that you currently own in the bank.

Question 5.
Electronic Transfer
Correct Answer: Money from one bank account to another using a computer-based
system without the need of bank staff

Question 6.
Direct Debit
Correct Answer: An arrangement made with a bank that allows a third party to
transfer money from a person's account on
agreed dates

Question 7.
Standing order
Correct Answer: A way of setting up a regular, fixed payment from your bank
account

Question 8.
Prepaid Card
Correct Answer: Your money but has to be repaid but with the ability to set a
spending limit according to your budget

,Question 9.
Contactless Card
Correct Answer: A regular card but with RFID or NFC wireless communication

Question 10.
Charge Card
Correct Answer: Money that has to be repaid but with added perks and strict
repayment plans

Question 11.
Store card
Correct Answer: A card that you can receive benefits from but can only be spent in
specific stores within the business

Question 12.
Mobile Banking
Correct Answer: A service provided by the bank that gives you access to your
account through a mobile phone

Question 13.
BACS (Bankers' Automated Clearing Services)
Correct Answer: A way of transferring money from one account to another

Question 14.
Faster Payment Service
Correct Answer: A reduction of time it takes for a payment to process

Question 15.
CHAPS (Clearing House Automated Payment Service)
Correct Answer: Guarantees same day payments

Question 16.
ISA (Individual Savings Account)
Correct Answer: Savings into a bank account

Question 17.
Premium Bonds
Correct Answer: Government security that offers no interest or capital gain but is
entered in regular draws for cash prizes

Question 18.
Bond

, Correct Answer: A form of debt issued by companies

Question 19.
Gilt
Correct Answer: A form of debt issued by the government

Question 20.
Pension
Correct Answer: Tax-efficient long-term savings plan

Question 21.
Current Ratio
Liquid Capital Ratio
Gross Profit Margin
Net Profit Margin
Current Assets
Correct Answer: Owned by the business that are likely to change on a regular basis

Question 22.
Fixed Assets
Correct Answer: Owned by the business that aren't likely to change on a regular
basis

Question 23.
Current Liabilities
Correct Answer: Owed by the business that are likely to change on a regular basis

Question 24.
Fixed/Non-current Liabilities
Correct Answer: Owed by the business that aren't likely to change on a regular
basis

Question 25.
Net assets
Correct Answer: Non-current assets + current assets - (current liabilities + long
term liabilities)

Question 26.
Depreciation
Profit or loss for the year
Correct Answer: gross profit - expenses + other income