BTEC business Comprehensive
Questions (Frequently Tested)
with Verified Answers Graded
A+
what are the functions of money ? - Answer: medium of exchange, unit of account, store of
value
unit of account - Answer: allows consumers to compare relative values of goods due to the
stated prices of goods and allows us to place a monetary value on goods and services
means of exchange - Answer: Allows us to trade
store of value - Answer: something that keeps its value if it is stored rather than used, e.g
money saved in a bank account
legal tender - Answer: Any kind of money that a creditor must by law accept in payment for
debts
legally recognised as a form of payment
personal attitudes to money - Answer: -different attitudes towards risk and rewards as well as
saving money
-might depend of your family's attitude
,-influenced by your daily spending
life stages for each age - Answer: as you grow from childhood to adulthood, your financial needs
change
childhood - Answer: -limited needs
-mainly reliant on parents
-want sweets or toys
-parents might want to save for them/open an account for them
-may rely on pocket money
adolescence - Answer: -less reliant on parents, want to socialise away from family
-want to be more independent
-look for a part time job
-likely to receive cash as gifts
young adult - Answer: -want to be more independent
-university or career
-buying a car or renting somewhere to stay
-maybe looking for someone to settle down with
-taking a student loan
-borrow money to pay for car
-eligible for credit and debit cards
middle aged - Answer: -supports family
-starts saving for their children's futures
, -enjoy having access to additional money to spend
-paying mortgage
old age - Answer: -less dependent
-may move to a retirement home
-fewer financial needs for assets but maybe higher for services such as health care
why we plan expenditure - Answer: -to avoid getting into debt
-to provide insurance against loss or illness
-to avoid legal action and/or repossession
-remain solvent
-maintain a good credit rating
-avoid bankruptcy
generate income and savings
cash- notes or coins - Answer: +most widely accepted form of exchange
+physical not virtual
+feel confident when using
-can be lost or stolen
-only appropriate on purchase to a certain amount
-cannot be used online
Debit card - issued by banks for goods and services - Answer: +no need to carry cash
+secure method of payment
widely accepted
+offers a degree of protection
Questions (Frequently Tested)
with Verified Answers Graded
A+
what are the functions of money ? - Answer: medium of exchange, unit of account, store of
value
unit of account - Answer: allows consumers to compare relative values of goods due to the
stated prices of goods and allows us to place a monetary value on goods and services
means of exchange - Answer: Allows us to trade
store of value - Answer: something that keeps its value if it is stored rather than used, e.g
money saved in a bank account
legal tender - Answer: Any kind of money that a creditor must by law accept in payment for
debts
legally recognised as a form of payment
personal attitudes to money - Answer: -different attitudes towards risk and rewards as well as
saving money
-might depend of your family's attitude
,-influenced by your daily spending
life stages for each age - Answer: as you grow from childhood to adulthood, your financial needs
change
childhood - Answer: -limited needs
-mainly reliant on parents
-want sweets or toys
-parents might want to save for them/open an account for them
-may rely on pocket money
adolescence - Answer: -less reliant on parents, want to socialise away from family
-want to be more independent
-look for a part time job
-likely to receive cash as gifts
young adult - Answer: -want to be more independent
-university or career
-buying a car or renting somewhere to stay
-maybe looking for someone to settle down with
-taking a student loan
-borrow money to pay for car
-eligible for credit and debit cards
middle aged - Answer: -supports family
-starts saving for their children's futures
, -enjoy having access to additional money to spend
-paying mortgage
old age - Answer: -less dependent
-may move to a retirement home
-fewer financial needs for assets but maybe higher for services such as health care
why we plan expenditure - Answer: -to avoid getting into debt
-to provide insurance against loss or illness
-to avoid legal action and/or repossession
-remain solvent
-maintain a good credit rating
-avoid bankruptcy
generate income and savings
cash- notes or coins - Answer: +most widely accepted form of exchange
+physical not virtual
+feel confident when using
-can be lost or stolen
-only appropriate on purchase to a certain amount
-cannot be used online
Debit card - issued by banks for goods and services - Answer: +no need to carry cash
+secure method of payment
widely accepted
+offers a degree of protection
