Unit 3: Personal and
Business Finance
REVISION BOOKLET 2
Learning Aim B: Explore the personal finance sector.
Features of Financial Institutions (B1)
Communicating with customers (B2)
Consumer Protection in relation to personal finance (B3)
Information guidance and advice (B4)
Revision Task One: Match the following financial institutions with their corresponding
definition.
Payday Loans Insurance Companies Bank of England
Credit Unions Pawnbrokers Banks
National Savings and Investments Pension Companies Building Societies
Financial Institution Definition
UK’s Central bank. Responsible for setting
interest rates and controlling the national
debt as well as issuing legal tender.
An organisation that handles financial
transactions and stores money on behalf of
its customers.
An organisation that handles financial
transactions and stores money on behalf of
its members.
Not for profit organisations that handles
financial transactions and stores money on
behalf of its members.
Government backed organisation that
handles financial transactions and stores
money on behalf of its members.
Profit making businesses that protect
against the risk of loss. Will charge
premiums for the service.
Businesses which sell policies to individuals
to help them save to fund their future
retirement.
Individuals or businesses that loan money
against an item of value e.g. jewellery. If
the loan is not repaid within a specific
period of time the item can be sold.
Organisation that offers short term loans at
very high rates of interest. Might be
suitable in an emergency to solve short
term cash shortage.
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Revision Task Two: Write one advantage and one disadvantage for each type of financial
institution.
Financial Institution Advantage Disadvantage
Bank of England
Banks
Building Societies
Credit Unions
National Savings
and Investments
Insurance
Companies
Pension
Companies
Pawnbrokers
Payday Loans
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Exam Style Questions:
Q1. Describe the role of the Financial Ombudsman Service.
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Total for Question 1 = 2 marks
Q2. Explain two disadvantages of pay day loans.
1.
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Total for Question 2 = 4 marks
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Revision Task Three: Complete the table below describing the methods banks use to interact with
customers, along with their associated advantages and disadvantages.
Method and Definition Advantage of Method Disadvantage of method
Branch is......
Online Banking is ...
Telephone Banking is ...
Mobile Banking is ...
Postal Banking is ...
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Exam Style Question:
Q3. Assess the most appropriate method banks can use to communicate with customers
aged 65+.
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Total for Question 6 = 10 marks
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Revision Task Four: Complete the table below describing the Function, role and responsibilities of
the FCA, FOS, FSCS, OFT and Legislation.
Organisation / Law Function / Role Responsibility
Financial Conduct Authority
Financial Ombudsmen Service
Financial Services
Compensation Scheme
Office of Fair Trading
Legislation – Consumer Credit
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Revision Task Five: Match the organisations which provide guidance and advice to individuals on
personal finance with their definition.
Debt Counsellors Money Advice Service
Citizens Advice Independent Financial Advisor (IFA) Price Comparison Websites
Individual Voluntary Arrangements (IVA) bankruptcy
Organisation Definition – Role and Responsibility
An organisation run by charities which offers advice on both
financial and non financial issues.
Advice can be provided at physical location, via websites, email or
telephones.
Financial Advice provided includes banking, insurance, pensions
and debt management.
Professionals providing independent advice on savings,
investments, mortgages and pensions.
Websites containing prices for similar goods or services within in
different markets to help consumers locate the best deals.
A government organisation created to offer free and impartial
financial advice.
A professional offering independent advice on managing debt.
A government organisation which allows an individual to declare
themselves bankrupt.
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Revision Task Six: Provide one advantage and disadvantage for each provider of financial advice.
Provider Advantage Disadvantage
Citizens Advice
Independent Financial
Advisor (IFA)
Price Comparison
Websites
Money Advice Service
Debt Counsellors
Individual Voluntary
Arrangements (IVAs)
bankruptcy
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Exam Style Question:
Q4. Describe the role of the Office of Fair Trading
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Total for Question 1 = 2 marks
Q5. Describe the role of the Financial Conduct Authority
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Total for Question 1 = 2 marks
10 | P a g e Unit 3: Personal and Business
Finance
James is 24 years old and has recently left home. He has a job but is struggling to pay his rent. He
has an outstanding credit card bill and is concerned that his finances are getting out of control. He
has seen a poster at the bus stop on the way to work advertising the services provided by Citizens
Advice and is wondering whether they may be able to help.
Q6. Discuss whether it is important for James to visit Citizens Advice to obtain financial
guidance.
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Total for Question 1 = 6 marks
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Finance
REVISION PROGRESS CHECK
You have now completed the tasks related to Explore the personal finance sector–
complete the table below to identify content you are confident about and areas you want to
revisit. This is the end of Learning Aim B.
B Explore the Personal Finance Sector
Checklist Yes No - must
revise
I can describe the features of Financial Institutions and describe
their relevant advantages and disadvantages.
I can do this for:
The Bank of England
Banks
Building Societies
Credit Unions
National Savings and Investments
Insurance companies
Pension Companies
Pawnbrokers
Payday loans.
I can describe the following methods of interacting with customers
Branch
Online Banking
Telephone Banking
Mobile Banking
Postal Banking
And the relevant advantages and disadvantages for each
communication method.
I can describe the role and responsibilities of the following
FCA – Financial Conduct Authority
FOS – Financial Ombudsmen Service
FSCS – Financial Services Compensation Scheme
OFT – Office of Fair Trading
Legislation – Consumer Credit
I can describe the role and responsibilities, and advantages and
disadvantages of the following :
Citizens Advice
Independent Financial Advisor (IFA)
Price Comparison Websites
Money Advice Service
Debt Counsellors
Individual Voluntary Arrangements (IVAs)
Bankruptcy
12 | P a g e Unit 3: Personal and Business
Finance
13 | P a g e Unit 3: Personal and Business
Finance
