©Themoon EXAM SOLUTIONS
12/11/2024 7:08PM
BTEC Business- Unit 3 Finance revision
exam questions and answers
Cash - Answers✓✓Money in the form of bills or coins
Debit card - Answers✓✓A card used to withdraw money from a bank account
Credit card - Answers✓✓A card authorizing the holder to buy goods and services that can be
paid for later.
Cheque - Answers✓✓A written instruction to your bank to pay a sum of money to another
person from your current account
Electronic transfer - Answers✓✓The transfer of funds from one account to another via the
internet or telephone
Direct debit - Answers✓✓An electronic payment out of an account. The amount and frequency
of a direct debit payment can vary
Standing order - Answers✓✓n. an instruction to a bank to make regular payments
Contactless card - Answers✓✓Cards containing antennae allow money to be transferred when
the card touches a contactless terminal
Store card - Answers✓✓a credit card which can only be used to buy goods in one particular shop
or chain of shops
Mobile banking - Answers✓✓apps that allow online banking access from devices such as smart
phones, tablets, etc.
, ©Themoon EXAM SOLUTIONS
12/11/2024 7:08PM
BACS - Answers✓✓Bankers Automated Clearing Services
CHAPS - Answers✓✓Clearing House Automated Payments System
Standard current account - Answers✓✓Account with full banking facilities
Premium current account - Answers✓✓An account with a fee entitling the user to extra services
Basic current account - Answers✓✓Account with limited facilities usually used by someone
with a poor credit rating
Student account - Answers✓✓Account designed to assist young people to become prudent with
their personal finances
Overdraft - Answers✓✓Occurs when money is withdrawn from a bank account and the available
balance goes below zero
Personal loan - Answers✓✓Not backed up by collateral. Also known as an unsecured loan
Hire purchase - Answers✓✓The buying of equipment by paying in instalments, usually
including interest.
Mortgage - Answers✓✓A payment, usually monthly, applied to the balance of a home loan used
when purchasing housing
Payday loan - Answers✓✓a high interest loan where money is borrowed against a future
paycheck
12/11/2024 7:08PM
BTEC Business- Unit 3 Finance revision
exam questions and answers
Cash - Answers✓✓Money in the form of bills or coins
Debit card - Answers✓✓A card used to withdraw money from a bank account
Credit card - Answers✓✓A card authorizing the holder to buy goods and services that can be
paid for later.
Cheque - Answers✓✓A written instruction to your bank to pay a sum of money to another
person from your current account
Electronic transfer - Answers✓✓The transfer of funds from one account to another via the
internet or telephone
Direct debit - Answers✓✓An electronic payment out of an account. The amount and frequency
of a direct debit payment can vary
Standing order - Answers✓✓n. an instruction to a bank to make regular payments
Contactless card - Answers✓✓Cards containing antennae allow money to be transferred when
the card touches a contactless terminal
Store card - Answers✓✓a credit card which can only be used to buy goods in one particular shop
or chain of shops
Mobile banking - Answers✓✓apps that allow online banking access from devices such as smart
phones, tablets, etc.
, ©Themoon EXAM SOLUTIONS
12/11/2024 7:08PM
BACS - Answers✓✓Bankers Automated Clearing Services
CHAPS - Answers✓✓Clearing House Automated Payments System
Standard current account - Answers✓✓Account with full banking facilities
Premium current account - Answers✓✓An account with a fee entitling the user to extra services
Basic current account - Answers✓✓Account with limited facilities usually used by someone
with a poor credit rating
Student account - Answers✓✓Account designed to assist young people to become prudent with
their personal finances
Overdraft - Answers✓✓Occurs when money is withdrawn from a bank account and the available
balance goes below zero
Personal loan - Answers✓✓Not backed up by collateral. Also known as an unsecured loan
Hire purchase - Answers✓✓The buying of equipment by paying in instalments, usually
including interest.
Mortgage - Answers✓✓A payment, usually monthly, applied to the balance of a home loan used
when purchasing housing
Payday loan - Answers✓✓a high interest loan where money is borrowed against a future
paycheck
