BTEC Business- Unit 3 Finance revision exam questions and answers 2023

BTEC Business- Unit 3 Finance revision exam questions and answers 2023Cash 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 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Account designed to assist young people to become prudent with their personal finances Overdraft Occurs when money is withdrawn from a bank account and the available balance goes below zero Personal loan Not backed up by collateral.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