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Evaluate' questions require you to reach a reasoned judgement from your own assessment of a set of alternatives

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Evaluate' questions require you to reach a reasoned judgement from your own assessment of a set of alternatives. Systematically work through the five different insurance quotations. You will need to focus on the annual cost and take account of the excesses and costs of any additional cover offered. Unit 3 Guided ..........."-.. -. . . .. . . . 4 . . . . .

Eleni has asked for advice on choosing a suitable motor insurance premium. She has recently left college and has secured an accounting apprenticeship in a business located 25 miles from her home. She has purchased a second-hand car for $1 100. This table gives the top five third party, fire and theft insurance quotations Eleni has found. Table 1: Third party, fire and theft motor insurance quotations Insurance Annual premium Excess Windscreen Courtesy car Breakdown company cover in the event cover of accident repairs Stockbridge E1250 Compulsory $700 Included Not included $60 Insurance Voluntary $500 160 excess United f1330 Compulsory f400 Included f15 per day E55 Insurers 12 monthly Voluntary $500 E50 excess payments of $120 Carterton plc E1356 Compulsory $350 Included Included E35 Voluntary $500 E45 excess Rutland Cars E1440 Compulsory $300 Included f12 per day $50 12 monthly Voluntary $500 E30 excess payments of $120 Cranford E 1884 Compulsory E300 Included Included E50 Insurance 12 monthly Voluntary $500 payments of $162 6 Evaluate which of the motor insurance policies would be most suitable for Eleni. Number the insurance companies 1-5 (1 being the best premium) for each of the quotations shown in the table and then judge which motor insurance policy has the best results overall. . . . . . . . . . . . . . . . - . . . . . . . . . . . . . .= = . . . . . ... "Evaluate' questions require you to reach a reasoned judgement from your own assessment of a set of alternatives. Systematically work through the five different insurance quotations. You will need to focus on the annual cost and take account of the excesses and costs of any additional cover offered

Unit 3 Guided "Assess' questions require you to weigh up the positive and negative aspects of a topic or situation and give your conclusion. You will need to consider both the advantages and the disadvantages of ISAs and compare these to other methods of saving that are available. Think about the return on your investment, accessibility and the safety of your investment. An ISA is an Individual Savings Account which does not charge individuals tax on the interest earned on their savings, unlike other deposit or savings accounts where tax may be payable on the interest. There are two types of ISA: . .. . . . .. Links For more on savings and ISAs, see the Revision Guide, page 52. Total for Question 5 = 10 marks

Guided For business customers, electronic banking has many advantages. .......... - . . . . . . . . .. . . . . . The main disadvantages ...... Links Revise banking services and ways to pay on pages 48-49 and customer communication on page 56 of the Revision Guide. Total for Question 4 = 6 marks Over the past few years there has been increasing focus on individuals saving for their future needs. With low interest rates savers are looking for good deals. Guided 5 Assess the use of ISAs as a method of saving. What are the main advantages and disadvantages of ISAs? . . . . . . . . . . . . . . .

Uni Guide Banking technology is changing at a rapid pace. Traditional ways of handling money such as cash and cheques and providing services to customers at local branches are no longer sufficient. Customers want instant access to their money and flexible 24/7 banking services. Guided 4 Discuss why it is important for the customer to have access to the latest banking technologies. List the main technologies that are available and then consider why these are important to customers and how it would affect them if they were not available. Telephone banking - 24/7 automated service for simple transactions: checking balance, paying bills; customers can talk directly to an adviser Online banking - Mobile banking - 'Discuss' questions require you to consider different aspects of a topic, how they link together and their importance in order to give a balanced point of view. You should look at both the advantages and disadvantages concerning the use of technology in banking. When answering, you may wish to consider the following areas: . Convenience . Transfers Security breaches for both the customer and the bank Speed . Compatibility with other computer software Control For personal customers, the use of the latest banking technologies offers ..............

Unit 3 Guided Guided 3 Explain two effects on borrowers if the interest rate increases. Note down the points you want to include and then work out how to link them together. Complete the notes below. Bank of England raises interest rates - Cost of borrowing rises Immediate effect for borrowers - Possible long-term consequences for borrowers - - . . . . . .+ . . . . . . . First, define the key terms - what is meant by an increase in interest rates. Then link together the facts in a logical order, explaining how one factor can influence another and, where appropriate, provide a conclusion. Remember to use business terminology. (i) When the Bank of England raises interest rates, the cost of borrowing will rise. It will ................ . ............ . . . .... (ii) Faced by higher borrowing costs, borrowers ..... Total for Question 3 = 4 marks

Revision test 1 This Workbook is designed to revise skills that might be needed in your exam. The details of your actual exam may change from year to year so always make sure you are up to date. Ask your tutor or check the Pearson website for the most up-to-date Sample Assessment Material to get an idea of the structure of your exam and what this requires of you. Section A: Personal finance Answer ALL revision questions in the spaces provided. The ability to handle and control money is an important skill to ensure personal and business success. 1 Give two functions of money. This is a factual recall question. There are four possible correct responses - you only need to identify two functions. Guided (i) Means of exchange - can be used to buy, sell and trade goods and services. (ii) .. Links To revise the main functions of money, see page 45 in the Revision Guide. Total for Question 1 = 2 marks 2 Describe how a pawnbroker works. You need to provide a brief summary of the role of the pawnbroker. Write two to three sentences that clearly relate to each other. Think about the financial service offered by the pawnbroker and how this service is paid for. ... .. .. Links You can find out about the role of the pawnbroker on page 55 of the Revision Guide. Total for Question 2 = 2 marks