A mobile banking application is tested using several test types: functional testing of the transfer workflow, usability testing of the navigation and layout, and regression testing after each release. These test types target different test objectives — what the system does, how easy it is to use, and whether changes broke existing behavior. A single test type may run at more than one test level: functional tests appear both at component level and at system level.
What is the difference between a test type and a test level? A test level is defined by the stage of development and integration — component, integration, system, acceptance. A test type is defined by its objective — functional, usability, regression, performance. Levels and types are orthogonal: any type can be performed at any level.
Can several test types run at the same level? Yes, and they often do. System testing commonly includes functional, usability, and regression test types in the same phase.
Is regression testing a test type? Yes. It is grouped by objective (detecting defects introduced by changes), which is the defining characteristic of a test type.
Why does the distinction matter for exam purposes? ISTQB questions frequently test the type-versus-level distinction. Remember: level = where in the lifecycle, type = what objective the activities serve.