Business BTEC Personal Finance Review Practice Test.
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Module
BTEC
Institution
BTEC
Business BTEC Personal Finance Review Practice Test.
Functions and role of money - CORRECT ANSWER Money flowing in and out- it comes in your account and money comes out your account
store of value - CORRECT ANSWER It allows us to use it in the future as it keeps its value
Legal tender - CO...
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Business BTEC Personal Finance
Review Practice Test.
Functions and role of money - CORRECT ANSWER Money flowing in and out- it comes in your account
and money comes out your account
store of value - CORRECT ANSWER It allows us to use it in the future as it keeps its value
Legal tender - CORRECT ANSWER It is legally recognized form of payment- old £1 getting rid of
Role of money - CORRECT ANSWER is affected by a wide number of factors. individuals may change their
attitude to money based on their situation they find themselves in
Personal attitudes - CORRECT ANSWER individuals that will vary in their attitudes to risk and reward as
well as savings and borrowing.
Life stages - CORRECT ANSWER As you grow up from childhood to adulthood, your financial needs
change, each stage of your life has different implication that will affect not just your needs but also your
attitude to money.
Culture - CORRECT ANSWER affected by tradition, religion and ethical beliefs, will have different
attitudes to money. The older generation of Chinese people, for example have a culture a saving.
Life events - CORRECT ANSWER Events throughout your life will impact on your attitude to money.
These events may be within your control, for example going to university, travelling abroad, getting
married or starting a family or any be outside your control, example illness, financial gains and losses
External influences - CORRECT ANSWER Factors outside your control, including the state of the
economy. For example the state of the economy will impact on wages, availability of jobs and the prices
of goods and services. Decisions by the government will affect the amount of the tax you pay or the
amount you receive in benefits. These all directly affect your ability to spend and save
, Interest rates - CORRECT ANSWER cost of borrowing money or the reward for saving money
If interest rates are low maybe more willing to borrowing money or spend on credit, when interest rates
are high there is more of an incentive to save
Debt - CORRECT ANSWER money that you owe
credit rating - CORRECT ANSWER a score given to individual of how likely they are from previously debt
based on your previous action
solvent - CORRECT ANSWER the ability to meet day by day expenditure
inflation - CORRECT ANSWER Inflation is a general risk in prices. This leads to the value of money falling,
that is, £10 today was worth less that £10 a year ago. Expenditure now can help counter the effect of
inflation
cash - CORRECT ANSWER money in coins and notes
credit cards - CORRECT ANSWER It's a card that has your money and you can borrow funds
Debit card - CORRECT ANSWER It's a card that has your own money on it
Cheque - CORRECT ANSWER Its a printed form used instead of cash to make payments from your bank
account
electronic payment - CORRECT ANSWER a way to pay for goods and services
direct debit - CORRECT ANSWER An arrangement set up with the bank that enable a third party to
transfer money from a person's account on agreed dates, usually used to pay bills
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