BTEC business level 3 – unit 3exam with questions and answers (100% solved)
Banker's Automated Clearing Service (MOP) - advantages and disadvantages - ✔✔✔-system
that allows the transfer of payments directly from one account to another
adv: no additional costs, can be accessed in a variety of ways
dis: limit set on amount that can be transferred, faster payments aren't offered by all banks
Banks try to attract customers by changing features of their accounts... What are the 5 main
features of a current account? - ✔✔✔-rate of interest paid on any positive balance
rate of interest charged on a negative balance
overdraft limit
charges on unauthorised overdrafts
additional incentives
Basic current account - advantages and disadvantages - ✔✔✔-offers limited features designed
for those customers who may find it difficult to open a bank account due to poor credit ratings
adv: offers easy first step for individuals to gain access to basic banking facilities
dis: no debit card or overdraft facility
Bonds and gilts (different types of investment) - advantages and disadvantages - ✔✔✔-fixed
term securities where the lender lends money to companies and governments in return for
payments
adv: regular fixed return
dis: risk losing some or all of the investment value if the bond or gilt value falls
Car insurance - advantages and disadvantages - ✔✔✔-legal requirement to insure any car on
the road
adv: protects people against theft or damage
dis: can be expensive for young drivers
, BTEC business level 3 – unit 3exam with questions and answers (100% solved)
Cash (MOP) - advantages and disadvantages - ✔✔✔-notes and coins in a wide range of
denominations
adv: widely accepted, makes budgeting easier, consumers feel confident when using
dis: can be lost or stolen, cant be used online
Charge card (MOP) - advantages and disadvantages - ✔✔✔-issued by financial institutions
allowing customers to delay payments for good and services for a short period of time
adv: reduces risk of debts, allows short period of cash
dis: must be paid in full each month, annual fixed fee is applied
Cheque (MOP) - advantages and disadvantages - ✔✔✔-written order to a bank to make a
payment for a specific amount of money from one account to another
adv: can be written for an exact amount, low risk as the payment can only be cashed by the
named payee
dis: time delay between writing cheque and it being cashed, old fashioned, easy to make errors
Clearing House Automated Payment System (MOP) - advantages and disadvantages - ✔✔✔-
system that allows the transfer of payments directly from one account to another
adv: transfer can be made the same day, no limit on amount on the amount that can be
transferred
dis: normally a fixed charge per transaction regardless of the amount transferred
Contactless card (MOP) - advantages and disadvantages - ✔✔✔-allows money to be transferred
when the card touches the contactless terminal
adv: gaining in popularity, secure method of making payments
dis: only accepted for relatively small transactions, still not widely accepted as seen as new
technology
Banker's Automated Clearing Service (MOP) - advantages and disadvantages - ✔✔✔-system
that allows the transfer of payments directly from one account to another
adv: no additional costs, can be accessed in a variety of ways
dis: limit set on amount that can be transferred, faster payments aren't offered by all banks
Banks try to attract customers by changing features of their accounts... What are the 5 main
features of a current account? - ✔✔✔-rate of interest paid on any positive balance
rate of interest charged on a negative balance
overdraft limit
charges on unauthorised overdrafts
additional incentives
Basic current account - advantages and disadvantages - ✔✔✔-offers limited features designed
for those customers who may find it difficult to open a bank account due to poor credit ratings
adv: offers easy first step for individuals to gain access to basic banking facilities
dis: no debit card or overdraft facility
Bonds and gilts (different types of investment) - advantages and disadvantages - ✔✔✔-fixed
term securities where the lender lends money to companies and governments in return for
payments
adv: regular fixed return
dis: risk losing some or all of the investment value if the bond or gilt value falls
Car insurance - advantages and disadvantages - ✔✔✔-legal requirement to insure any car on
the road
adv: protects people against theft or damage
dis: can be expensive for young drivers
, BTEC business level 3 – unit 3exam with questions and answers (100% solved)
Cash (MOP) - advantages and disadvantages - ✔✔✔-notes and coins in a wide range of
denominations
adv: widely accepted, makes budgeting easier, consumers feel confident when using
dis: can be lost or stolen, cant be used online
Charge card (MOP) - advantages and disadvantages - ✔✔✔-issued by financial institutions
allowing customers to delay payments for good and services for a short period of time
adv: reduces risk of debts, allows short period of cash
dis: must be paid in full each month, annual fixed fee is applied
Cheque (MOP) - advantages and disadvantages - ✔✔✔-written order to a bank to make a
payment for a specific amount of money from one account to another
adv: can be written for an exact amount, low risk as the payment can only be cashed by the
named payee
dis: time delay between writing cheque and it being cashed, old fashioned, easy to make errors
Clearing House Automated Payment System (MOP) - advantages and disadvantages - ✔✔✔-
system that allows the transfer of payments directly from one account to another
adv: transfer can be made the same day, no limit on amount on the amount that can be
transferred
dis: normally a fixed charge per transaction regardless of the amount transferred
Contactless card (MOP) - advantages and disadvantages - ✔✔✔-allows money to be transferred
when the card touches the contactless terminal
adv: gaining in popularity, secure method of making payments
dis: only accepted for relatively small transactions, still not widely accepted as seen as new
technology
