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WorksheetsBTEC Level 3 Unit 3 LOA
Total questions: 15
Worksheet time: 11mins
Which of the following is NOT a function of money?
Interest rates
Means of exchange
Legal tender
Unit of account
Which of the following is NOT a method of saving or investment?
Premium bonds
Shares
Current account
Gilts
Which of the following would NOT be taken into account by an insurance company when deciding whether or not to accept an application for a life insurance policy?
Age of applicant last birthday
The occupation held by the applicant
Number of children the applicant has
Whether the applicant is a smoker
Which of the following sources of finance would be MOST suitable for a one-off or infrequent purchase, e.g. a TV or laptop?
Bank loan
Leasing
Hire purchase
Mortgage
A DISADVANTAGE of using payday loans as compared to bank loans is:
Payday loans have to be paid back
A payday loan will not be given if you have a poor credit rating
The interest on a payday loan is higher than on a bank loan
A payday loan is only available for 3 months
What do personal attitudes, life stages, culture and external influences affect?
The role of finance
The role of money
The role of a financial advisor
The role of a credit union
Which of the following is the MOST important reason for an individual to avoid getting into unmanageable debt?
It might affect their credit rating
They will not be able to socialise
It might lead to arguments with loved ones
It might mean they have to sell assets to pay bills
Inflation affects the value of money. If a meal costs £8.00 and you earn £8.00 per hour, an hour of work will get you a meal. If then the price of the meal increases by 10%, how long will you now have to work to pay for it?
54 mins
60 mins
66 mins
70 mins
Which of the following is NOT a method of payment that can be made from a current bank account?
Cheque
Debit card
Store card
Direct debit
A direct debit has many features. Which of the following is NOT a feature of a direct debit?
It is an agreement made with a bank allowing them to make regular transfers into another account.
It is an agreement allowing a third party to withdraw money from an account
Withdrawals are made on a set day to pay for goods and services, e.g. bills
It is an agreement made with a bank allowing them to make regular transfers to another account
Which organisation is appointed by the government to represent the interests of the consumer in disputes with financial service providers?
OFT
FCA
FOS
FSCS
What kind of current account would an individual with a poor credit rating be MOST likely to be offered?
Standard
Simple
Basic
Ordinary
If an individual needed immediate funds to purchase a new boiler, which of the following would be LEAST suitable:
Bank loan
Credit card
Mortgage
Payday loan
Which of the following is an ADVANTAGE of using a pre-paid card?
It can be used even when your account is overdrawn
It helps you to control spending
It can be used without a PIN
It is issued by a high street store
Which of the following is a DISADVANTAGE of buying shares as an investment?
There is no guarantee that the share prices will fall
There is no guarantee that the company invested in will not commit fraud
There is no guarantee that the shares will pay dividends
Interest earned on the shares is taxed
