BTEC BUSINESS- UNIT 3 FINANCE
EXAM QUESTIONS AND ANSWERS 100%
PASS.
Cash - ANS Money in the form of bills or coins
Debit card - ANS A card used to withdraw money from a bank account
Credit card - ANS A card authorizing the holder to buy goods and services that can be paid for
later.
Cheque - ANS A written instruction to your bank to pay a sum of money to another person
from your current account
Electronic transfer - ANS The transfer of funds from one account to another via the internet
or telephone
Direct debit - ANS An electronic payment out of an account. The amount and frequency of a
direct debit payment can vary
Standing order - ANS n. an instruction to a bank to make regular payments
Contactless card - ANS Cards containing antennae allow money to be transferred when the
card touches a contactless terminal
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
, Store card - ANS a credit card which can only be used to buy goods in one particular shop or
chain of shops
Mobile banking - ANS apps that allow online banking access from devices such as smart
phones, tablets, etc.
BACS - ANS Bankers Automated Clearing Services
CHAPS - ANS Clearing House Automated Payments System
Standard current account - ANS Account with full banking facilities
Premium current account - ANS An account with a fee entitling the user to extra services
Basic current account - ANS Account with limited facilities usually used by someone with a
poor credit rating
Student account - ANS Account designed to assist young people to become prudent with
their personal finances
Overdraft - ANS Occurs when money is withdrawn from a bank account and the available
balance goes below zero
Personal loan - ANS Not backed up by collateral. Also known as an unsecured loan
Hire purchase - ANS The buying of equipment by paying in instalments, usually including
interest.
Mortgage - ANS A payment, usually monthly, applied to the balance of a home loan used
when purchasing housing
2026 STUDY MATERIAL @COPYRIGHT RESERVED 2
EXAM QUESTIONS AND ANSWERS 100%
PASS.
Cash - ANS Money in the form of bills or coins
Debit card - ANS A card used to withdraw money from a bank account
Credit card - ANS A card authorizing the holder to buy goods and services that can be paid for
later.
Cheque - ANS A written instruction to your bank to pay a sum of money to another person
from your current account
Electronic transfer - ANS The transfer of funds from one account to another via the internet
or telephone
Direct debit - ANS An electronic payment out of an account. The amount and frequency of a
direct debit payment can vary
Standing order - ANS n. an instruction to a bank to make regular payments
Contactless card - ANS Cards containing antennae allow money to be transferred when the
card touches a contactless terminal
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
, Store card - ANS a credit card which can only be used to buy goods in one particular shop or
chain of shops
Mobile banking - ANS apps that allow online banking access from devices such as smart
phones, tablets, etc.
BACS - ANS Bankers Automated Clearing Services
CHAPS - ANS Clearing House Automated Payments System
Standard current account - ANS Account with full banking facilities
Premium current account - ANS An account with a fee entitling the user to extra services
Basic current account - ANS Account with limited facilities usually used by someone with a
poor credit rating
Student account - ANS Account designed to assist young people to become prudent with
their personal finances
Overdraft - ANS Occurs when money is withdrawn from a bank account and the available
balance goes below zero
Personal loan - ANS Not backed up by collateral. Also known as an unsecured loan
Hire purchase - ANS The buying of equipment by paying in instalments, usually including
interest.
Mortgage - ANS A payment, usually monthly, applied to the balance of a home loan used
when purchasing housing
2026 STUDY MATERIAL @COPYRIGHT RESERVED 2
