BTEC BUSINESS- UNIT 3 FINANCE REVISION EXAM QUESTIONS AND ANSWERS
Cash - (ANSWER)Money in the form of bills or coins
Debit card - (ANSWER)A card used to withdraw money from a bank account
Credit card - (ANSWER)A card authorizing the holder to buy goods and services that can be paid for
later.
Cheque - (ANSWER)A written instruction to your bank to pay a sum of money to another person from
your current account
Electronic transfer - (ANSWER)The transfer of funds from one account to another via the internet or
telephone
Direct debit - (ANSWER)An electronic payment out of an account. The amount and frequency of a direct
debit payment can vary
Standing order - (ANSWER)n. an instruction to a bank to make regular payments
Contactless card - (ANSWER)Cards containing antennae allow money to be transferred when the card
touches a contactless terminal
Store card - (ANSWER)a credit card which can only be used to buy goods in one particular shop or chain
of shops
Mobile banking - (ANSWER)apps that allow online banking access from devices such as smart phones,
tablets, etc.
BACS - (ANSWER)Bankers Automated Clearing Services
CHAPS - (ANSWER)Clearing House Automated Payments System
, BTEC BUSINESS- UNIT 3 FINANCE REVISION EXAM QUESTIONS AND ANSWERS
Standard current account - (ANSWER)Account with full banking facilities
Premium current account - (ANSWER)An account with a fee entitling the user to extra services
Basic current account - (ANSWER)Account with limited facilities usually used by someone with a poor
credit rating
Student account - (ANSWER)Account designed to assist young people to become prudent with their
personal finances
Overdraft - (ANSWER)Occurs when money is withdrawn from a bank account and the available balance
goes below zero
Personal loan - (ANSWER)Not backed up by collateral. Also known as an unsecured loan
Hire purchase - (ANSWER)The buying of equipment by paying in instalments, usually including interest.
Mortgage - (ANSWER)A payment, usually monthly, applied to the balance of a home loan used when
purchasing housing
Payday loan - (ANSWER)a high interest loan where money is borrowed against a future paycheck
ISA - (ANSWER)Individual savings account
DSA - (ANSWER)Deposit and savings account
Premium bonds - (ANSWER)Government scheme allowing individuals to save a set amount in return for
being entered into prize draw monthly
Cash - (ANSWER)Money in the form of bills or coins
Debit card - (ANSWER)A card used to withdraw money from a bank account
Credit card - (ANSWER)A card authorizing the holder to buy goods and services that can be paid for
later.
Cheque - (ANSWER)A written instruction to your bank to pay a sum of money to another person from
your current account
Electronic transfer - (ANSWER)The transfer of funds from one account to another via the internet or
telephone
Direct debit - (ANSWER)An electronic payment out of an account. The amount and frequency of a direct
debit payment can vary
Standing order - (ANSWER)n. an instruction to a bank to make regular payments
Contactless card - (ANSWER)Cards containing antennae allow money to be transferred when the card
touches a contactless terminal
Store card - (ANSWER)a credit card which can only be used to buy goods in one particular shop or chain
of shops
Mobile banking - (ANSWER)apps that allow online banking access from devices such as smart phones,
tablets, etc.
BACS - (ANSWER)Bankers Automated Clearing Services
CHAPS - (ANSWER)Clearing House Automated Payments System
, BTEC BUSINESS- UNIT 3 FINANCE REVISION EXAM QUESTIONS AND ANSWERS
Standard current account - (ANSWER)Account with full banking facilities
Premium current account - (ANSWER)An account with a fee entitling the user to extra services
Basic current account - (ANSWER)Account with limited facilities usually used by someone with a poor
credit rating
Student account - (ANSWER)Account designed to assist young people to become prudent with their
personal finances
Overdraft - (ANSWER)Occurs when money is withdrawn from a bank account and the available balance
goes below zero
Personal loan - (ANSWER)Not backed up by collateral. Also known as an unsecured loan
Hire purchase - (ANSWER)The buying of equipment by paying in instalments, usually including interest.
Mortgage - (ANSWER)A payment, usually monthly, applied to the balance of a home loan used when
purchasing housing
Payday loan - (ANSWER)a high interest loan where money is borrowed against a future paycheck
ISA - (ANSWER)Individual savings account
DSA - (ANSWER)Deposit and savings account
Premium bonds - (ANSWER)Government scheme allowing individuals to save a set amount in return for
being entered into prize draw monthly
