Not stupid questions at all!
If the placement is far away, you will still live at your university accommodation and will have to travel to placement.
Travel costs can be reimbursed by NHS Bursary, although the cost of travel to placement has to be more than that which it costs you to get to university (I'm not sure about whether the distance has to be further, I think it is just that the cost has to be more). Whatever the cost difference is, you will be refunded that.
E.g. Say you walk to uni, cost = £0 and get the bus to placement £3 a day, you will be reimbursed the full amount. Say you get the bus to uni = £3 a day, but then you have to get the train to placement £7 a day, you will be reimbursed £4 a day. You have to detail each journey you have made on a claim form and submit it with receipts for travel costs once the placement is over. It is best to do this form as you go along, rather than leaving til the end of a long placement. (Taxis are not reimbursed - it has to be public transport).
The universities should allocate placements based on whether or not you drive, and where you live (That's what mine did), but there is still an expectation that you travel to anywhere within your university's allocated region/area. If you really can't get to a placement, beyond all reasonable travel methods, then you may be able to negotiate with your university to change placements.
Hope that helps!