BTEC Level 3 Finance MCQ Quiz

What is the primary function of money?

• Means of exchange

• A liability

• A source of debt

• A financial statement

Which of the following is NOT a type of borrowing?

• Mortgage

• Overdraft

• ISA

• Hire purchase

What does the FCA (Financial Conduct Authority) regulate?

• Business marketing practices

• The UK financial services industry

• International stock markets

• Insurance premium taxes

A standing order is best described as:

• A one-time online transaction

• An agreement to pay a fixed amount regularly

• A method of paying in cash

• A loan repayment scheme

Which financial institution is responsible for issuing banknotes in the UK?

• Bank of England

• Barclays Bank

• HSBC

• Nationwide

Which financial product typically offers the highest interest rates for savings?

• Current account

• Individual Savings Account (ISA)

• Personal loan

• Overdraft facility

What does the Financial Ombudsman Service (FOS) do?

• Provides financial loans to small businesses

• Resolves disputes between financial services and customers

• Issues stock market regulations

• Helps customers open new bank accounts

Which of these is an advantage of a credit card?

• No interest charges

• Builds credit history

• Unlimited borrowing limit

• Guaranteed zero fees

What is a payday loan?

• A long-term investment

• A high-interest short-term loan

• A type of pension fund

• A financial grant

Which financial institution provides pension funds?

• Bank of England

• Credit unions

• Insurance companies

• Payday lenders