Students coming out of yesterday morning's higher-level business studies Junior Certificate exam were horrified - not by the exam paper but by the cost of raising money to buy a house.

Question 4 on a house purchase and the cost of its finance highlighted for them how expensive it was to take out a mortgage, they told Ms Ann Mulcahy, who teaches at St Nessan's Community College, Moylish, Limerick.

Nonetheless, yesterday's Junior Certificate business studies papers were a good news story according to teachers, who heaped praise upon the examiners for the quality of the questions they posed. Both higher- and ordinary-level papers were correctly pitched, teachers reported.

The higher-level paper 1 gained a very positive reaction from students, Ms Mulcahy said. It was well laid out and represented a well balanced examination of the syllabus. "It's refreshing to see the course examining practical aspects of everyday living - booking a holiday, raising a mortgage and working out the cost of insuring your first car," she commented.

Mr John Crilly, ASTI subject convenor, who teaches at Ardee Community School, Co Louth, noted that the house-purchase question was a little unusual but was extremely relevant and included a calculation. Mr Thomas Bredin, TUI course representative who teaches at Manorhamilton Comprehensive School, Co Leitrim, observed that the paper was very much in line with papers in previous years. Mr Pat Morris, a teacher at Colaiste Chriost Ri, Cork, said he was particularly pleased with the 20 short questions. In the past they had tended to be quite difficult and he was "glad to see them moderated". The paper, he said, allowed students "plenty of time and plenty of choice".

It was the afternoon's higher-level paper 2 which was usually a cause for concern, he noted. In the event, the questions were "fine" and not as long as in previous years.

Question 4, which asked students to write a report on the installation of a computer system, was an interesting one, according to Ms Ann Mulcahy, who is a member of the BSTAI (Business Teachers Association of Ireland). The ability to communicate is a vital business asset, she noted.

Question 5 concerned a cash flow forecast. This was an easy question on which to pick up marks, she said.

Commenting generally on the paper, she noted that teachers appreciated the practical aspects and relevance of the questions. "Students will have no reason to feel bad." Teachers described the ordinary-level paper as predictable. The 20 questions on section A were "satisfactory" and most students would have had "a fair stab at it", Mr Crilly said. Question 3 though, could have been difficult, since it required a knowledge of consumer affairs. However, Mr Crilly pointed out that examiners need some means of separating A and B students, question 3(c) was the type of question that could do so.

Question 4, in which students were asked to complete an insurance proposal form, was more a higher-level standard question, Mr Crilly argued. He pointed out that some students taking ordinary-level papers lack the ability to express themselves in writing and could have found this question difficult.

Teachers, however, were pleased with the last question - number 8 - on the ordinary paper. This question included logos of a number of well known brands - Kelloggs, Coca Cola and Levis. "It was very fair to pick these brands," commented Mr Crilly. "Ninety per cent of students will get the answers right."

The question on local radio advertising was also fair, he said. "Most youngsters nowadays listen to local radio."