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BTEC National Level 3 Business Unit
3 Personal and Business Finance
Questions and Answers Latest 2026
Car insurance Ans: A requirement to drive on UK roads,
but can be third party
Pet insurance Ans: Covers the cost of veterinary
treatment, but not a requirement
Health Insurance Ans: Insurance that supports your
medical condition, but not a requirement
Travel Insurance Ans: Covers multiple factors when
abroad
Life Insurance Ans: Help to cover family if you die
Home and Contents insurance Ans: Protects your
belongings and infrastructure
Credit Cards Ans: Borrow money to be repaid later.
Overdraft Ans: The ability to withdraw money that you
do not have from a current account.
Hire purchase Ans: This allows you to have use of an
item immediately but pay for it in regular instalments.
© 2025 All rights reserved
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Payday Loan Ans: This is a short term source of finance
used to bridge the gap between now and next receiving a
wage.
Personal Loan Ans: A loan granted for personal, family or
household purposes
Mortgage Ans: When the bank lends you money but you
have to pay it back plus the interest on the mortgage
Cash Ans: Money that is physical in either paper or coins
Cheque Ans: A written, dated, and signed instrument that
contains an unconditional order from the drawer that
directs a bank to pay a definite sum of money to a payee.
Debit Card Ans: Money that you currently own in the
bank.
Electronic Transfer Ans: Money from one bank account to
another using a computer-based system without the need
of bank staff
Direct Debit Ans: An arrangement made with a bank that
allows a third party to transfer money from a person's
account on agreed dates
Standing order Ans: A way of setting up a regular, fixed
payment from your bank account
Prepaid Card Ans: Your money but has to be repaid but
with the ability to set a spending limit according to your
budget
© 2025 All rights reserved
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Contactless Card Ans: A regular card but with RFID or
NFC wireless communication
Charge Card Ans: Money that has to be repaid but with
added perks and strict repayment plans
Store card Ans: A card that you can receive benefits from
but can only be spent in specific stores within the
business
Mobile Banking Ans: A service provided by the bank that
gives you access to your account through a mobile phone
BACS (Bankers' Automated Clearing Services) Ans: A way
of transferring money from one account to another
Faster Payment Service Ans: A reduction of time it takes
for a payment to process
CHAPS (Clearing House Automated Payment Service) Ans:
Guarantees same day payments
ISA (Individual Savings Account) Ans: Savings into a bank
account
Premium Bonds Ans: Government security that offers no
interest or capital gain but is entered in regular draws for
cash prizes
Bond Ans: A form of debt issued by companies
Gilt Ans: A form of debt issued by the government
© 2025 All rights reserved
BTEC National Level 3 Business Unit
3 Personal and Business Finance
Questions and Answers Latest 2026
Car insurance Ans: A requirement to drive on UK roads,
but can be third party
Pet insurance Ans: Covers the cost of veterinary
treatment, but not a requirement
Health Insurance Ans: Insurance that supports your
medical condition, but not a requirement
Travel Insurance Ans: Covers multiple factors when
abroad
Life Insurance Ans: Help to cover family if you die
Home and Contents insurance Ans: Protects your
belongings and infrastructure
Credit Cards Ans: Borrow money to be repaid later.
Overdraft Ans: The ability to withdraw money that you
do not have from a current account.
Hire purchase Ans: This allows you to have use of an
item immediately but pay for it in regular instalments.
© 2025 All rights reserved
, 2 | Page
Payday Loan Ans: This is a short term source of finance
used to bridge the gap between now and next receiving a
wage.
Personal Loan Ans: A loan granted for personal, family or
household purposes
Mortgage Ans: When the bank lends you money but you
have to pay it back plus the interest on the mortgage
Cash Ans: Money that is physical in either paper or coins
Cheque Ans: A written, dated, and signed instrument that
contains an unconditional order from the drawer that
directs a bank to pay a definite sum of money to a payee.
Debit Card Ans: Money that you currently own in the
bank.
Electronic Transfer Ans: Money from one bank account to
another using a computer-based system without the need
of bank staff
Direct Debit Ans: An arrangement made with a bank that
allows a third party to transfer money from a person's
account on agreed dates
Standing order Ans: A way of setting up a regular, fixed
payment from your bank account
Prepaid Card Ans: Your money but has to be repaid but
with the ability to set a spending limit according to your
budget
© 2025 All rights reserved
, 3 | Page
Contactless Card Ans: A regular card but with RFID or
NFC wireless communication
Charge Card Ans: Money that has to be repaid but with
added perks and strict repayment plans
Store card Ans: A card that you can receive benefits from
but can only be spent in specific stores within the
business
Mobile Banking Ans: A service provided by the bank that
gives you access to your account through a mobile phone
BACS (Bankers' Automated Clearing Services) Ans: A way
of transferring money from one account to another
Faster Payment Service Ans: A reduction of time it takes
for a payment to process
CHAPS (Clearing House Automated Payment Service) Ans:
Guarantees same day payments
ISA (Individual Savings Account) Ans: Savings into a bank
account
Premium Bonds Ans: Government security that offers no
interest or capital gain but is entered in regular draws for
cash prizes
Bond Ans: A form of debt issued by companies
Gilt Ans: A form of debt issued by the government
© 2025 All rights reserved
