BTEC Business Level 3 - Unit 3 – Finance
Exam Questions And Answers
what are the 6 types of personal borrowing? - - -
correct answer ✅mortgages, hire purchase, payday loans,
overdraft, personal loans, credit cards
personal loan - - -
correct answer ✅gives you the ability to borrow a set amount of
money, normally for a specific purpose, to be repaid in regular
instalments.
payday loan - - -
correct answer ✅short term source of finance used to bridge the
gaps between now and next receiving a wage
credit card - - -
correct answer ✅goods are paid for by card and can be paid for
either at the end of a set period, normally a month, when a
statement is issued
overdraft - - -
correct answer ✅allows you to withdraw money that you don't
have in a current account
,BTEC Business Level 3 - Unit 3 – Finance
Exam Questions And Answers
mortgage - - -
correct answer ✅long-term loan to fund the purchase of assets,
normally paid back over a long time, usually 25 years. it is secured
against an item like a house.
hire purchase - - -
correct answer ✅allows you to have use of an item immediately
but pay for it in regular instalments. the item remains the property
of the seller until all instalments have been made
what are the 6 saving and investment options? - - -
correct answer ✅ISA, deposits & savings account, premium bonds,
bonds & gilts, shares, pensions
when are saving and investment options available? - - -
correct answer ✅when you are earning or receiving more money
than you need to cover your expenditure
Individual savings account (ISA) - - -
correct answer ✅a type of saving account where the holder is not
charged income tax on the interest received.
, BTEC Business Level 3 - Unit 3 – Finance
Exam Questions And Answers
deposit and savings account - - -
correct answer ✅accounts where interest is paid on the balance
and normally the holder needs to give notice before withdrawing
funds
premium bonds - - -
correct answer ✅government scheme that allows individuals to
save up to a set amount by buying bonds. the bond holder doesn't
receive interest on their savings but each bond is placed into a
regular draw for cash prizes
bonds & gilts - - -
correct answer ✅fixed term securities where the lender lends
money to companies and governments in return for interest
payments. the money is invested for a specific period of time
shares - - -
correct answer ✅involve investment in a business in return for
equity. the shareholder will receive dividends from the company's
profits and will also want the value of the shares to increase
pensions - - -
correct answer ✅long term saving plans where individuals make
Exam Questions And Answers
what are the 6 types of personal borrowing? - - -
correct answer ✅mortgages, hire purchase, payday loans,
overdraft, personal loans, credit cards
personal loan - - -
correct answer ✅gives you the ability to borrow a set amount of
money, normally for a specific purpose, to be repaid in regular
instalments.
payday loan - - -
correct answer ✅short term source of finance used to bridge the
gaps between now and next receiving a wage
credit card - - -
correct answer ✅goods are paid for by card and can be paid for
either at the end of a set period, normally a month, when a
statement is issued
overdraft - - -
correct answer ✅allows you to withdraw money that you don't
have in a current account
,BTEC Business Level 3 - Unit 3 – Finance
Exam Questions And Answers
mortgage - - -
correct answer ✅long-term loan to fund the purchase of assets,
normally paid back over a long time, usually 25 years. it is secured
against an item like a house.
hire purchase - - -
correct answer ✅allows you to have use of an item immediately
but pay for it in regular instalments. the item remains the property
of the seller until all instalments have been made
what are the 6 saving and investment options? - - -
correct answer ✅ISA, deposits & savings account, premium bonds,
bonds & gilts, shares, pensions
when are saving and investment options available? - - -
correct answer ✅when you are earning or receiving more money
than you need to cover your expenditure
Individual savings account (ISA) - - -
correct answer ✅a type of saving account where the holder is not
charged income tax on the interest received.
, BTEC Business Level 3 - Unit 3 – Finance
Exam Questions And Answers
deposit and savings account - - -
correct answer ✅accounts where interest is paid on the balance
and normally the holder needs to give notice before withdrawing
funds
premium bonds - - -
correct answer ✅government scheme that allows individuals to
save up to a set amount by buying bonds. the bond holder doesn't
receive interest on their savings but each bond is placed into a
regular draw for cash prizes
bonds & gilts - - -
correct answer ✅fixed term securities where the lender lends
money to companies and governments in return for interest
payments. the money is invested for a specific period of time
shares - - -
correct answer ✅involve investment in a business in return for
equity. the shareholder will receive dividends from the company's
profits and will also want the value of the shares to increase
pensions - - -
correct answer ✅long term saving plans where individuals make
