BTEC Level 3 Business - Unit 3: Personal and Business Finance: Learning aim B: Explore the personal finance sector- Explanation/features; Advantages; Disadvantages

Bank of England - Type of organisation - Advantages - qualified answers• Responsible for protecting the financial stability of the economy as a whole • Sets interest rates at a level designed to help achieve a stable economy • Lends to banks Bank of England - Type of organisation - Disadvantages - qualified answers• Not a bank for members of the general public • Can raise interest rates making borrowing more expensive Banks - Type of organisation - Advantages - qualified answers• Offer a range of services and account types • Provide a secure place to store money • Pay interest on credit balances on most types of accounts Banks - Type of organisation - Disadvantages - qualified answers• Savings are only protected up to the value of £75,000, so if a bank goes bankrupt savings above this would be lost • Profit-making organisations owned by shareholders, therefore costs to individuals may be higher than necessary in order to fulfil shareholder objectives Branch - Method - Advantages - qualified answers• Opportunity to build a relationship developing trust and brand loyalty • Transactions can be conducted there and then • Additional services such as advice can be offered • Gives the customer a high level of confidence Branch - Method - Disadvantages - qualified answers• Need to travel to a branch which is likely to incur travel costs, e.g. parking or fares for public transport • Restricted to bank opening hours • May be long queues plus travel time, making the process time consuming Building societies - Type of organisation - Advantages - qualified answers• Offer a range of services and account types • Provide a secure place to store mo