Unit 3
C7085. Extended Certificate
Exam questions for Learning Aim A/B
Understand the importance of
managing personal finance.
YOU HAVE ONE HOUR FOR THIS
FORMATIVE ASSESSMENT
Remember: After completion, read,
name it and hand in
0
, Salsabil BENYAHIA.
1. What is money?
Is a medium of exchange and a unit of accounting, and it is what we use to
buy things and pay of stuff. It can be coins, paper bills or even just numbers
on a computer.
1
2. What forms or roles can money take?  2
Currently.
Digital money.
Commodity money.
3. Define the following terms
Interest rates The cost of borrowing money
monthly or the return on investment.
Debt Money owed to someone with an
obligation to repay it.
Credit rating A source that assesses a person or
entities.
Bankrupt A legal state of being unable to repay
the debt.
Solvent
Current account A bank account that used for daily
transactions like deposit, withdraw.
1
C7085. Extended Certificate
Exam questions for Learning Aim A/B
Understand the importance of
managing personal finance.
YOU HAVE ONE HOUR FOR THIS
FORMATIVE ASSESSMENT
Remember: After completion, read,
name it and hand in
0
, Salsabil BENYAHIA.
1. What is money?
Is a medium of exchange and a unit of accounting, and it is what we use to
buy things and pay of stuff. It can be coins, paper bills or even just numbers
on a computer.
1
2. What forms or roles can money take?  2
Currently.
Digital money.
Commodity money.
3. Define the following terms
Interest rates The cost of borrowing money
monthly or the return on investment.
Debt Money owed to someone with an
obligation to repay it.
Credit rating A source that assesses a person or
entities.
Bankrupt A legal state of being unable to repay
the debt.
Solvent
Current account A bank account that used for daily
transactions like deposit, withdraw.
1
