BTEC Business Level 3 Unit 3 Personal and Business Finance - Practice Questions & Verified Answers
Cash Money in the form of bills or coins
Debit card A card used to withdraw money from a bank account
Credit card A card authorizing the holder to buy goods and services that can be paid for later.
Cheque A written instruction to your bank to pay a sum of money to another person from
your current account
Electronic transfer The transfer of funds from one account to another via the internet or telephone
Direct debit An electronic payment out of an account. The amount and frequency of a direct
debit payment can vary
Standing order n. an instruction to a bank to make regular payments
Contactless card Cards containing antennae allow money to be transferred when the card touches a
contactless terminal
Store card a credit card which can only be used to buy goods in one particular shop or chain of
shops
Mobile banking apps that allow online banking access from devices such as smart phones, tablets,
etc.
BACS Bankers Automated Clearing Services
CHAPS Clearing House Automated Payments System
Standard current account Account with full banking facilities
Premium current account An account with a fee entitling the user to extra services
Basic current account Account with limited facilities usually used by someone with a poor credit rating
2026-2027 | Stuvia Edition
, BTEC Business Level 3 Unit 3 Personal and Business Finance - Practice Questions & Verified Answers
Student account Account designed to assist young people to become prudent with their personal
finances
Overdraft Occurs when money is withdrawn from a bank account and the available balance
goes below zero
Personal loan Not backed up by collateral. Also known as an unsecured loan
Hire purchase The buying of equipment by paying in instalments, usually including interest.
Mortgage A payment, usually monthly, applied to the balance of a home loan used when
purchasing housing
Payday loan a high interest loan where money is borrowed against a future paycheck
ISA Individual savings account
DSA Deposit and savings account
Premium bonds Government scheme allowing individuals to save a set amount in return for being
entered into prize draw monthly
Gilts Bonds issued by the UK government.
Shares an individual buying ownership of a corporation
Pension A sum of money paid regularly by a company to someone who has retired or has a
disability
Car insurance a type of insurance that covers any damage you may cause to another person or
their vehicle
Home insurance Insurance covering the building and contents owned by an individual
Life insurance Insurance that provides death benefits to the survivors of the insured.
2026-2027 | Stuvia Edition
Cash Money in the form of bills or coins
Debit card A card used to withdraw money from a bank account
Credit card A card authorizing the holder to buy goods and services that can be paid for later.
Cheque A written instruction to your bank to pay a sum of money to another person from
your current account
Electronic transfer The transfer of funds from one account to another via the internet or telephone
Direct debit An electronic payment out of an account. The amount and frequency of a direct
debit payment can vary
Standing order n. an instruction to a bank to make regular payments
Contactless card Cards containing antennae allow money to be transferred when the card touches a
contactless terminal
Store card a credit card which can only be used to buy goods in one particular shop or chain of
shops
Mobile banking apps that allow online banking access from devices such as smart phones, tablets,
etc.
BACS Bankers Automated Clearing Services
CHAPS Clearing House Automated Payments System
Standard current account Account with full banking facilities
Premium current account An account with a fee entitling the user to extra services
Basic current account Account with limited facilities usually used by someone with a poor credit rating
2026-2027 | Stuvia Edition
, BTEC Business Level 3 Unit 3 Personal and Business Finance - Practice Questions & Verified Answers
Student account Account designed to assist young people to become prudent with their personal
finances
Overdraft Occurs when money is withdrawn from a bank account and the available balance
goes below zero
Personal loan Not backed up by collateral. Also known as an unsecured loan
Hire purchase The buying of equipment by paying in instalments, usually including interest.
Mortgage A payment, usually monthly, applied to the balance of a home loan used when
purchasing housing
Payday loan a high interest loan where money is borrowed against a future paycheck
ISA Individual savings account
DSA Deposit and savings account
Premium bonds Government scheme allowing individuals to save a set amount in return for being
entered into prize draw monthly
Gilts Bonds issued by the UK government.
Shares an individual buying ownership of a corporation
Pension A sum of money paid regularly by a company to someone who has retired or has a
disability
Car insurance a type of insurance that covers any damage you may cause to another person or
their vehicle
Home insurance Insurance covering the building and contents owned by an individual
Life insurance Insurance that provides death benefits to the survivors of the insured.
2026-2027 | Stuvia Edition
