Business BTEC Latest Exam Fully Solved 2024.

Main functions of money - Answer 1. unit of account- (you exchange money for an equivalent value of goods) 2. means of exchange- (buy, sell or trade) 3. store of value- (it can be stored e.g. banks) 4. legal tender- (national currency of a country an official method of payment) Factors influencing your view on money - Answer 1. personal attitudes- towards risk and reward 2. life stages- your financial priories and needs 3. culture- religious belief and ethical principles 4. life events- (e.g. moving houses or made redundant) 5. external factors- state of economy or availability of jobs 6. interest rates Benefits of planning expenditure - Answer 1. good credit rating-will be able to borrow money 2. not spending money on unnecessary goods, means that you are able to save money 3. savings can be used fund purchases and unexpected expenses Risks of not planning expenditure - Answer 1. can get into debt 2. have insufficient funds 3. poor credit rating- can affect your ability to borrow money 4. legal action taken against you- can lead to repossession 5. not able to save in the future debt - Answer Something that is owned or due. costs - Answer An amount to pay to buy or use a good or service