Consumer & Financial Decisions Flashcards
(20 cards)
What is a consumer?
A consumer is an individual who purchases goods and services for personal use.
True or False: A budget is a plan for managing income and expenses.
True
Fill in the blank: The __________ is the amount of money remaining after all expenses have been paid.
net income
What is the purpose of advertising?
To promote products or services to consumers.
Multiple Choice: What is a fixed expense?
An expense that remains constant each month.
Define ‘savings’.
Savings are the portion of income not spent on consumption.
True or False: A credit card allows you to borrow money up to a certain limit.
True
What is the role of the Australian Competition and Consumer Commission (ACCC)?
To enforce consumer rights and promote fair trading.
Fill in the blank: The __________ is the total amount of money earned from all sources.
gross income
What is impulse buying?
Making unplanned purchases based on emotion rather than need.
Multiple Choice: Which of the following is a variable expense?
Groceries
What is a financial goal?
A specific objective regarding the management of money.
True or False: Interest is the cost of borrowing money.
True
What is a loan?
A sum of money borrowed that is expected to be paid back with interest.
Fill in the blank: A __________ is an official document that outlines the terms of a loan.
loan agreement
What is a budget deficit?
When expenses exceed income.
Multiple Choice: Which of the following is a benefit of saving money?
Financial security in emergencies
What is the purpose of a receipt?
To provide proof of purchase.
True or False: A warranty is a guarantee that a product will work as advertised.
True
Define ‘investment’.
The act of allocating resources, usually money, in order to generate income or profit.
