Business BTEC Unit 3 - License Exam And Complete Answers 2024.
What is the Bank of England? - Answer It's the UK's central bank. Advantages of the Bank of England - Answer - responsible for UK's financial stability - interest rate designed to achieve stable economy Disadvantages of the Bank of England - Answer - increase in interest leads to expensive borrowing - members of public cannot access it What is a bank? - Answer It is a financial institution licensed to receive deposits and make loans (owned by shareholders). Advantages of banks - Answer - offer a range of services and account types - provide a secure place to store money - pay interest on credit balances (and charge high rates on borrowing, leading to increased profits) Disadvantages of banks - Answer - savings only protected up to £85,000 - may charge for certain accounts (premium account) - profit-making organisation (makes the cost to individual higher) What is a building society? - Answer It is a financial institution that provides banking and financial services to its members (account holders). Advantages of building societies - Answer - a secure place to store money - costs kept down (due to being owned by members) - pay interest on credit balances on most accounts
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