BTEC Level 3 Business Finance Unit 3 Lesson 4
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Questions and Answers

What is one advantage of certain financial institutions not having shareholders?

  • They can focus more on maximizing profits.
  • They have more robust marketing campaigns.
  • They typically have higher interest rates on loans.
  • Cost can be kept down due to less pressure to make a profit. (correct)

    • Which of the following is NOT a type of financial institution mentioned?

  • Credit unions
  • Investment banks (correct)
  • Pension companies
  • Insurance companies

    • Researching different financial institutions can help identify what?

  • Only the advantages of each institution.
  • The popularity of financial institutions worldwide.
  • The advantages and disadvantages of each institution. (correct)
  • The historical background of banking.

    • How have technology changes generally affected banking operations?

    <p>They have facilitated better communication with customers.</p> Signup and view all the answers

    Which option illustrates a specific type of communication banks might use to notify customers?

    <p>New direct debit notifications</p> Signup and view all the answers

    Which of the following is a method of banking that allows customers to carry out transactions using their mobile devices?

    <p>Mobile banking</p> Signup and view all the answers

    What service do Independent Financial Advisors provide?

    <p>They provide unbiased advice on financial products.</p> Signup and view all the answers

    Which organization is primarily focused on providing consumers with information about financial products and comparison services?

    <p>Price comparison websites</p> Signup and view all the answers

    Which of the following is NOT a method of banking listed?

    <p>In-person banking</p> Signup and view all the answers

    What is one major function of debt counsellors?

    <p>They help individuals manage and reduce their debt.</p> Signup and view all the answers

    What is one of the primary functions of the Bank of England?

    <p>Controlling inflation and interest rates</p> Signup and view all the answers

    Which of the following is NOT a service typically offered by building societies?

    <p>Investment banking</p> Signup and view all the answers

    What does a standing order allow customers to do?

    <p>Automatically transfer a fixed amount to another account</p> Signup and view all the answers

    How are members of a building society described in relation to ownership?

    <p>Part owners</p> Signup and view all the answers

    What is one benefit of using direct debits?

    <p>Ensures consistent timing for payments</p> Signup and view all the answers

    What communication technique is likely used by financial providers to build trust?

    <p>Personal relationship building</p> Signup and view all the answers

    What is a potential limitation of using cheques for transactions?

    <p>They can take time to clear</p> Signup and view all the answers

    What type of financial advice is typically offered by banks?

    <p>Investment advice and savings options</p> Signup and view all the answers

    What is a primary function of consumer protection organizations?

    <p>To safeguard consumer rights in case of product or service failures</p> Signup and view all the answers

    Which financial institution serves as an intermediary for consumer complaints against financial service providers?

    <p>Financial Ombudsmen Service (FOS)</p> Signup and view all the answers

    What is one limitation of using digital communication methods by financial institutions?

    <p>They may not allow for personalized responses</p> Signup and view all the answers

    What is a key benefit of the Consumer Rights Act 2015?

    <p>It protects consumers by establishing clear rights against faulty goods and services</p> Signup and view all the answers

    Which of the following best describes the role of the Financial Conduct Authority (FCA)?

    <p>To regulate all financial institutions and protect consumer interests</p> Signup and view all the answers

    Study Notes

    Level 3 BTEC Foundation Diploma

    • Business/Law/Finance
    • Unit 3: Personal and Business Finance
    • Lesson 4 - Learning Aim B

    Expectations

    • Break time is specified.
    • Students must wear their ID badges.
    • No food is allowed in the lesson.

    Break Time

    • Start time is noted.
    • Return time is noted.

    Ground Rules

    • Mobile phones are not to be used unless directed by a teacher.
    • Lanyards must be worn at all times.

    Learning Outcomes

    • Identify a range of financial institutions.
    • Explain the purpose and functions of financial institutions.
    • Analyze the benefits and limitations of each financial institution, and how they communicate with people.
    • Know which organizations offer advice and guidance.
    • Identify and describe communication techniques used by financial providers.
    • Analyze benefits and limitations of different communication methods.
    • Evaluate and register intent with financial providers to create effective communication.

    Activity 1

    • Class discussion about various financial institutions.
    • Students should list financial institutions they know.
    • Discussion points include the role and function of each institution within society.

    Bank of England

    • Video clips cover the Bank of England's role.
    • Sub-headings for notes include:
      • Money
      • Prices and value of money
      • Controlling spending
      • The financial system
      • The money-go-round
      • Keeping confidence
      • How the bank works

    Banks

    • A diagram shows services that banks offer, including advice, direct debits, cheques, BACS, mortgages, overdrafts, loans, cash withdrawals and standing orders.
    • Secure storage also mentioned.

    Building Societies

    • Similar services to banks are offered.
    • Account holders are also members, receiving voting rights.
    • No shareholders.
    • Lower pressure to make profits translates to lower costs.

    Activity 2

    • Research required for a glossary of financial institutions.
    • Include the Bank of England, banks, building societies, credit unions, National Savings & Investments, insurance companies, pension companies, pawnbrokers, and payday loan companies.
    • Advantages and disadvantages of using each institution must be explored.

    Discussion

    • Small group discussions on how technology impacts banking.
    • Whole group discussion on whether these changes are positive or negative for banking.
    • Perspective needed for different demographics (employees, banks, customers, business owners).
    • Identify if changes affect other businesses.

    Communicating with Customers

    • Communication methods (diagram) include advice, advertising, balances, notifications (e.g., direct debits), charges (e.g., interest rates), new services.

    Different ways to communicate with Customers

    • Diagram shows the different ways a bank communicates with customers: branch, online banking, mobile banking, phone banking, and postal banking.

    Learning Outcomes (Part 2)

    • Understand consumer protection in relation to personal finance.
    • Define the term 'Consumer Protection'.
    • Identify and explain the function, role, and responsibilities of organisations that protect consumers.
    • Seek assistance from relevant organisations in various situations.

    Consumer Protection

    • Consumer rights are protected by laws and organizations; this occurs when a business's product or service fails.
    • The Consumer Rights Act 2015 is mentioned.

    Research Task

    • Research required financial institutions:
      • Financial Conduct Authority (FCA)
      • Financial Ombudsman Service (FOS)
      • Financial Services Compensation Scheme (FSCS)
      • Office of Fair Trading (OFT)
    • Tasks include providing definitions and explaining how these institutions benefit consumers.

    Activity 5

    • Research the UK economy from 2007 to 2013 and the Global Financial Crisis.
    • Create a timeline of main events.
    • Describe why the financial crisis happened.

    Learning Outcomes (Session)

    • Identify a range of financial institutions.
    • Explain the purpose and functions of various financial institutions.
    • Analyze the benefits and limitations of different financial institutions.

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    Related Documents

    Level 3 BTEC Foundation Diploma Business/Law/Finance PDF

    Description

    This quiz covers Learning Aim B from Unit 3 of the BTEC Level 3 Foundation Diploma in Business, specifically focusing on Personal and Business Finance. Students will explore various financial institutions, their purposes, functions, communication techniques, and the benefits and limitations associated with each. Test your understanding and analyze how effective communication can be fostered with these financial providers.

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