BTEC National Level 3 Business Unit 3
Personal and Business Finance Test
2024/2025 Exam Q&A 100% Solved
Car insurance - ✔✔A requirement to drive on UK roads, but can be third party
Pet insurance - ✔✔Covers the cost of veterinary treatment, but not a
requirement
Health Insurance - ✔✔Insurance that supports your medical condition, but not a
requirement
Travel Insurance - ✔✔Covers multiple factors when abroad
Life Insurance - ✔✔Help to cover family if you die
Home and Contents insurance - ✔✔Protects your belongings and infrastructure
Credit Cards - ✔✔Borrow money to be repaid later.
Overdraft - ✔✔The ability to withdraw money that you do not have from a
current account.
Hire purchase - ✔✔This allows you to have use of an item immediately but pay
for it in regular instalments.
Payday Loan - ✔✔This is a short term source of finance used to bridge the gap
between now and next receiving a wage.
1|Page
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,Personal Loan - ✔✔A loan granted for personal, family or household purposes
Mortgage - ✔✔When the bank lends you money but you have to pay it back
plus the interest on the mortgage
Cash - ✔✔Money that is physical in either paper or coins
Cheque - ✔✔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.
Debit Card - ✔✔Money that you currently own in the bank.
Electronic Transfer - ✔✔Money from one bank account to another using a
computer-based system without the need of bank staff
Direct Debit - ✔✔An arrangement made with a bank that allows a third party to
transfer money from a person's account on agreed dates
Standing order - ✔✔A way of setting up a regular, fixed payment from your
bank account
Prepaid Card - ✔✔Your money but has to be repaid but with the ability to set a
spending limit according to your budget
Contactless Card - ✔✔A regular card but with RFID or NFC wireless
communication
2|Page
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, Charge Card - ✔✔Money that has to be repaid but with added perks and strict
repayment plans
Store card - ✔✔A card that you can receive benefits from but can only be spent
in specific stores within the business
Mobile Banking - ✔✔A service provided by the bank that gives you access to
your account through a mobile phone
BACS (Bankers' Automated Clearing Services) - ✔✔A way of transferring money
from one account to another
Faster Payment Service - ✔✔A reduction of time it takes for a payment to
process
CHAPS (Clearing House Automated Payment Service) - ✔✔Guarantees same day
payments
ISA (Individual Savings Account) - ✔✔Savings into a bank account
Premium Bonds - ✔✔Government security that offers no interest or capital gain
but is entered in regular draws for cash prizes
Bond - ✔✔A form of debt issued by companies
Gilt - ✔✔A form of debt issued by the government
Pension - ✔✔Tax-efficient long-term savings plan
3|Page
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
Personal and Business Finance Test
2024/2025 Exam Q&A 100% Solved
Car insurance - ✔✔A requirement to drive on UK roads, but can be third party
Pet insurance - ✔✔Covers the cost of veterinary treatment, but not a
requirement
Health Insurance - ✔✔Insurance that supports your medical condition, but not a
requirement
Travel Insurance - ✔✔Covers multiple factors when abroad
Life Insurance - ✔✔Help to cover family if you die
Home and Contents insurance - ✔✔Protects your belongings and infrastructure
Credit Cards - ✔✔Borrow money to be repaid later.
Overdraft - ✔✔The ability to withdraw money that you do not have from a
current account.
Hire purchase - ✔✔This allows you to have use of an item immediately but pay
for it in regular instalments.
Payday Loan - ✔✔This is a short term source of finance used to bridge the gap
between now and next receiving a wage.
1|Page
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,Personal Loan - ✔✔A loan granted for personal, family or household purposes
Mortgage - ✔✔When the bank lends you money but you have to pay it back
plus the interest on the mortgage
Cash - ✔✔Money that is physical in either paper or coins
Cheque - ✔✔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.
Debit Card - ✔✔Money that you currently own in the bank.
Electronic Transfer - ✔✔Money from one bank account to another using a
computer-based system without the need of bank staff
Direct Debit - ✔✔An arrangement made with a bank that allows a third party to
transfer money from a person's account on agreed dates
Standing order - ✔✔A way of setting up a regular, fixed payment from your
bank account
Prepaid Card - ✔✔Your money but has to be repaid but with the ability to set a
spending limit according to your budget
Contactless Card - ✔✔A regular card but with RFID or NFC wireless
communication
2|Page
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, Charge Card - ✔✔Money that has to be repaid but with added perks and strict
repayment plans
Store card - ✔✔A card that you can receive benefits from but can only be spent
in specific stores within the business
Mobile Banking - ✔✔A service provided by the bank that gives you access to
your account through a mobile phone
BACS (Bankers' Automated Clearing Services) - ✔✔A way of transferring money
from one account to another
Faster Payment Service - ✔✔A reduction of time it takes for a payment to
process
CHAPS (Clearing House Automated Payment Service) - ✔✔Guarantees same day
payments
ISA (Individual Savings Account) - ✔✔Savings into a bank account
Premium Bonds - ✔✔Government security that offers no interest or capital gain
but is entered in regular draws for cash prizes
Bond - ✔✔A form of debt issued by companies
Gilt - ✔✔A form of debt issued by the government
Pension - ✔✔Tax-efficient long-term savings plan
3|Page
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
