BTEC BUSINESS LEVEL 3 PERSONAL
FINANCE QUESTIONS WITH VERIFIED
ANSWERS [ GRADED A+]
Unit of Account - ✔️✔️A monetary value that is placed on goods or services. In the UK,
this is shown in pounds and pence.
Means of Exchange - ✔️✔️The use of money to buy goods and services.
Store of Value - ✔️✔️Money has a value, it can be stored and used in the future. It will
keep the same value at a later date.
Legal Tender - ✔️✔️Money is a legally recognised as a form of payment suitable for
purchasing all goods and services.
©morren2025/2026.Year published 2026.
,Personal Attitudes - ✔️✔️An individual's attitude towards risk and reward, and how they
balance borrowing, spending and saving.
Life Stages - ✔️✔️The change in financial needs and priorities as a person enters different
stages of their lifecycle (Childhood, adolescence, young adult, middle age, old age).
Culture - ✔️✔️An individual's background, beliefs or religion that influences their attitude
towards money.
Life Events - ✔️✔️Are major events that can happen in a person's life e.g. buying a house,
getting married, buying a car, going to university.
External Influences - ✔️✔️Are events outside a person's control e.g. the state of the
economy.
Interest Rates - ✔️✔️The cost of borrowing money or the reward for saving it.
Debt - ✔️✔️Money that a person owes and must repay. It can be to another person or an
institution.
©morren2025/2026.Year published 2026.
, Legal Action - ✔️✔️Were a lawsuit has been bought against a person by either an
organisation or another individual.
Repossession - ✔️✔️The action of retaking possession of a good or service which a
person has failed to pay for in full e.g. failing to meet the repayment plan of a car on hire
purchase.
Solvent - ✔️✔️When an individual or firm are able to pay their debts.
Insolvent - ✔️✔️When an individual or firm are unable to pay their debts.
Credit Rating - ✔️✔️An estimate of an individual or firms ability to repay their debts. It is
used by firms to establish the level of risk involved in lending a person or firm money. A
low credit rating would indicate there is a high risk they might not be able to repay what
they owe, whereas a high credit rating demonstrates they are a low risk.
Bankruptcy - ✔️✔️Where an individual or business are unable to pay any of their debts.
Income - ✔️✔️Money that is earned and paid on a regular basis e.g. weekly or monthly.
©morren2025/2026.Year published 2026.
FINANCE QUESTIONS WITH VERIFIED
ANSWERS [ GRADED A+]
Unit of Account - ✔️✔️A monetary value that is placed on goods or services. In the UK,
this is shown in pounds and pence.
Means of Exchange - ✔️✔️The use of money to buy goods and services.
Store of Value - ✔️✔️Money has a value, it can be stored and used in the future. It will
keep the same value at a later date.
Legal Tender - ✔️✔️Money is a legally recognised as a form of payment suitable for
purchasing all goods and services.
©morren2025/2026.Year published 2026.
,Personal Attitudes - ✔️✔️An individual's attitude towards risk and reward, and how they
balance borrowing, spending and saving.
Life Stages - ✔️✔️The change in financial needs and priorities as a person enters different
stages of their lifecycle (Childhood, adolescence, young adult, middle age, old age).
Culture - ✔️✔️An individual's background, beliefs or religion that influences their attitude
towards money.
Life Events - ✔️✔️Are major events that can happen in a person's life e.g. buying a house,
getting married, buying a car, going to university.
External Influences - ✔️✔️Are events outside a person's control e.g. the state of the
economy.
Interest Rates - ✔️✔️The cost of borrowing money or the reward for saving it.
Debt - ✔️✔️Money that a person owes and must repay. It can be to another person or an
institution.
©morren2025/2026.Year published 2026.
, Legal Action - ✔️✔️Were a lawsuit has been bought against a person by either an
organisation or another individual.
Repossession - ✔️✔️The action of retaking possession of a good or service which a
person has failed to pay for in full e.g. failing to meet the repayment plan of a car on hire
purchase.
Solvent - ✔️✔️When an individual or firm are able to pay their debts.
Insolvent - ✔️✔️When an individual or firm are unable to pay their debts.
Credit Rating - ✔️✔️An estimate of an individual or firms ability to repay their debts. It is
used by firms to establish the level of risk involved in lending a person or firm money. A
low credit rating would indicate there is a high risk they might not be able to repay what
they owe, whereas a high credit rating demonstrates they are a low risk.
Bankruptcy - ✔️✔️Where an individual or business are unable to pay any of their debts.
Income - ✔️✔️Money that is earned and paid on a regular basis e.g. weekly or monthly.
©morren2025/2026.Year published 2026.
