Unit 3 Btec Business Extended Diploma |8 Questions| With Correct Answers.

What is a function of money? {Ans: A unit of account (A measure or currency) A form of exchange (You buy goods in exchange of money) Has value (Money allows us to value items) Is legal tender (Officially recognized by law)}Give one advantage of cash as a payment method. {Ans: Most widely accepted form of exchange Physical not virtual Consumers feel confident when using Makes budgeting easier.}What is a role of money? {Ans: Money aims to empower individuals to budget, borrow and save with confidence.}Explain what direct debit is {Ans: An agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods or services received, e.g. pay a gas bill.}What is an overdraft? {Ans: Overdraft is a certain amount of money that is allowed to be taken out of your account when you don't have that money, this sum must be paid back each month.}Give an advantage of electronic transfer as a payment method {Ans: Almost instantaneous Provides a record of payment No additional costs incurred Easy to use for one-off and more frequent transactions.}Give one advantage of credit card as a