BTEC Business- Unit 3 Finance
revision exam
Cash -CORRECT ANSWER Money in the form of bills or coins
Debit card -CORRECT ANSWER A card used to withdraw money from a bank account
Credit card -CORRECT ANSWER A card authorizing the holder to buy goods and
services that can be paid for later.
Cheque -CORRECT ANSWER A written instruction to your bank to pay a sum of money
to another person from your current account
Electronic transfer -CORRECT ANSWER The transfer of funds from one account to
another via the internet or telephone
Direct debit -CORRECT ANSWER An electronic payment out of an account. The
amount and frequency of a direct debit payment can vary
Standing order -CORRECT ANSWER n. an instruction to a bank to make regular
payments
Contactless card -CORRECT ANSWER Cards containing antennae allow money to be
transferred when the card touches a contactless terminal
Store card -CORRECT ANSWER a credit card which can only be used to buy goods in
one particular shop or chain of shops
Mobile banking -CORRECT ANSWER apps that allow online banking access from
devices such as smart phones, tablets, etc.
BACS -CORRECT ANSWER Bankers Automated Clearing Services
CHAPS -CORRECT ANSWER Clearing House Automated Payments System
Standard current account -CORRECT ANSWER Account with full banking facilities
Premium current account -CORRECT ANSWER An account with a fee entitling the user
to extra services
Basic current account -CORRECT ANSWER Account with limited facilities usually used
by someone with a poor credit rating
, Student account -CORRECT ANSWER Account designed to assist young people to
become prudent with their personal finances
Overdraft -CORRECT ANSWER Occurs when money is withdrawn from a bank account
and the available balance goes below zero
Personal loan -CORRECT ANSWER Not backed up by collateral. Also known as an
unsecured loan
Hire purchase -CORRECT ANSWER The buying of equipment by paying in
instalments, usually including interest.
Mortgage -CORRECT ANSWER A payment, usually monthly, applied to the balance of
a home loan used when purchasing housing
Payday loan -CORRECT ANSWER a high interest loan where money is borrowed
against a future paycheck
ISA -CORRECT ANSWER Individual savings account
DSA -CORRECT ANSWER Deposit and savings account
Premium bonds -CORRECT ANSWER Government scheme allowing individuals to
save a set amount in return for being entered into prize draw monthly
Gilts -CORRECT ANSWER Bonds issued by the UK government.
Shares -CORRECT ANSWER an individual buying ownership of a corporation
Pension -CORRECT ANSWER A sum of money paid regularly by a company to
someone who has retired or has a disability
Car insurance -CORRECT ANSWER a type of insurance that covers any damage you
may cause to another person or their vehicle
Home insurance -CORRECT ANSWER Insurance covering the building and contents
owned by an individual
Life insurance -CORRECT ANSWER Insurance that provides death benefits to the
survivors of the insured.
Travel insurance -CORRECT ANSWER insurance meant to cover expenses over trips
Health insurance -CORRECT ANSWER helps people pay for medicine and doctors
when they are sick or hurt
revision exam
Cash -CORRECT ANSWER Money in the form of bills or coins
Debit card -CORRECT ANSWER A card used to withdraw money from a bank account
Credit card -CORRECT ANSWER A card authorizing the holder to buy goods and
services that can be paid for later.
Cheque -CORRECT ANSWER A written instruction to your bank to pay a sum of money
to another person from your current account
Electronic transfer -CORRECT ANSWER The transfer of funds from one account to
another via the internet or telephone
Direct debit -CORRECT ANSWER An electronic payment out of an account. The
amount and frequency of a direct debit payment can vary
Standing order -CORRECT ANSWER n. an instruction to a bank to make regular
payments
Contactless card -CORRECT ANSWER Cards containing antennae allow money to be
transferred when the card touches a contactless terminal
Store card -CORRECT ANSWER a credit card which can only be used to buy goods in
one particular shop or chain of shops
Mobile banking -CORRECT ANSWER apps that allow online banking access from
devices such as smart phones, tablets, etc.
BACS -CORRECT ANSWER Bankers Automated Clearing Services
CHAPS -CORRECT ANSWER Clearing House Automated Payments System
Standard current account -CORRECT ANSWER Account with full banking facilities
Premium current account -CORRECT ANSWER An account with a fee entitling the user
to extra services
Basic current account -CORRECT ANSWER Account with limited facilities usually used
by someone with a poor credit rating
, Student account -CORRECT ANSWER Account designed to assist young people to
become prudent with their personal finances
Overdraft -CORRECT ANSWER Occurs when money is withdrawn from a bank account
and the available balance goes below zero
Personal loan -CORRECT ANSWER Not backed up by collateral. Also known as an
unsecured loan
Hire purchase -CORRECT ANSWER The buying of equipment by paying in
instalments, usually including interest.
Mortgage -CORRECT ANSWER A payment, usually monthly, applied to the balance of
a home loan used when purchasing housing
Payday loan -CORRECT ANSWER a high interest loan where money is borrowed
against a future paycheck
ISA -CORRECT ANSWER Individual savings account
DSA -CORRECT ANSWER Deposit and savings account
Premium bonds -CORRECT ANSWER Government scheme allowing individuals to
save a set amount in return for being entered into prize draw monthly
Gilts -CORRECT ANSWER Bonds issued by the UK government.
Shares -CORRECT ANSWER an individual buying ownership of a corporation
Pension -CORRECT ANSWER A sum of money paid regularly by a company to
someone who has retired or has a disability
Car insurance -CORRECT ANSWER a type of insurance that covers any damage you
may cause to another person or their vehicle
Home insurance -CORRECT ANSWER Insurance covering the building and contents
owned by an individual
Life insurance -CORRECT ANSWER Insurance that provides death benefits to the
survivors of the insured.
Travel insurance -CORRECT ANSWER insurance meant to cover expenses over trips
Health insurance -CORRECT ANSWER helps people pay for medicine and doctors
when they are sick or hurt
