Everything

Question 1

business

Answer 1

Any activity conducted by an individual or individuals to produce and sell goods and services to make a profit

Question 2

economics

Answer 2

The study of decisions made by individuals, businesses and governments about how limiter resources are used to satisfy society’s unlimited needs and wants

Question 3

Goods

Answer 3

Tangible or physical product

Question 4

Services

Answer 4

Pay for a skill e.g doctor, massage

Question 5

Economic system

Answer 5

Way of organising the production and distribution of a nation’s goods, services and incomes

Question 6

Note: Australia’s resources

Answer 6

Australia’s resources are limited, therefore our government and businesses need to make desicions on how to best use these resources

Question 7

Natural resources

Answer 7

nature above or below the ground

Question 8

Labour resources

Answer 8

Intellectual/physical skills needed to make or provide a good or service

Question 9

Capital resources

Answer 9

Man-made resources used to produce/transport the goods and services consumers produce

Question 10

How interest works

Answer 10

lenders➡️(deposit money)➡️banks➡️(provide loans such as mortgages)➡️borrowers
Lenders➡️(pay a small amount of interest)➡️banks⬅️(pay back loan plus interest⬅️borrowers

Question 11

Interest - lending

Answer 11

-In society some people have spare money (surplus funds) that they save with a financial institutions
-They allow the financial institution to use their money in return for interest
-The interest rate is the pricnfinancial institutions must pay for the use of money

Question 12

Interest- borrowing

Answer 12

• There are also people who don’t have enough money (deficit funds) who need to borrow from financial institution
  -Interest is where you pay price for using borrowed money or receive a price for using borrowed money or receive a price for lending money
• Financial institutions make a profit by charging more to borrowers than they pay to depositors

Question 13

Who manages the money?

Answer 13

-The Australian Federal Government is responsible for manages all the money in Australia
- The Reserve bank of Australia (RBA) is the Government Bank that regulates money in Australia
-The RBA develops a ‘Monetary Policy’ to control spending in Australia
-The RBA controls spending rate by changing the interest rates

Question 14

Recession

Answer 14

-A period of bad economic circumstances
- When inflation is below2% For a Recession: The RBA will lower interest rates to encourage people to spend

Question 15

Recession effects

Answer 15

High unemployment
Lower production
Negative economic growth
Increased debt
Increased competition - to keep business alive

Question 16

Inflation effects

Answer 16

Low unemployment
Increased production
Increased cost of living
Reduced demand
Higher interest rates

Question 17

Inflation

Answer 17

-When the level of production and spending is rising to quickly, the general level of prices increases
- When inflation is above 3% For inflation: The RBA will increase interest rates and encourage people to save

Question 18

Credit union

Answer 18

A financial institution owned and operated entirely bynuts users. Creates a range of products similar to banks
-accepts deposits
-offers personal and home loans
-provides payment services such as credit cards

Question 19

Building society

Answer 19

Owned and operated by their member. Building societies historically supported their member in purhcasing homes

Question 20

Mortgage

Answer 20

Money advanced by bank, credit union or building society to a person for the purchase of a house or other property. The property is used as security for the loan, allowing the lender to seize the property if the borrower fails to make the regular repayments.

Question 21

Interest

Answer 21

An amount paid regularly for the use of boorowed money, usually expressed as an annual percentage (%p.a) of the sum of money lent ( the interest rate)

Question 22

ACCC

Answer 22

Organisation that attempts to track scammers and raise awareness amoung customers of the most common and dangerous types of scams

Question 23

Scam

Answer 23

When someone deceives you to steal your money or personal j fo

Question 24

Scam watch

Answer 24

A website and program that helps Australians identify, avoid and report scams

Question 25

Investment scam

Answer 25

When scammers promise big financial returns, but the goal is stealing from you. The pressure tactics get you to act fast and fake data is often used to make you think your money is growing

Question 26

Product and service scam

Answer 26

Scammers set up fake profiles or websites in actual retailer sites, They offer products or services at prices that are usually to good to be to true. They also post fake ads and reviews. They may use stolen logos or a .com.au domain name

Question 27

Ways scammers can reach you

Answer 27

-Pretending to be the government, law enforcement, trusted business or even your own family and friends -Including a hyper plink to a scam website -pressure tactics: making it sound urgent or giving a time limit -In person -Online/social media

Question 28

Online dating and romance scams

Answer 28

Scammers use social media or dating apps to find people looking for a relationship. They trick you into believing the relationship is real by calling or messaging them to make you feel special. They then manipulate you or black mail you for money

Question 29

Unexpected money

Answer 29

Scammers try to convince you that you are owed or entitled to money or winnings that you did not expect to receive. They scammer asks you to pay a fee or give your financial or identity details and use it to steal your money

Question 30

Jobs and employment scam

Answer 30

Scammers pretend to be hiring as high-profile companies or recruitment agencies. They often ask for payment Lt identity details so they can get the income they've promised. They then use this info to steal your money

Question 31

Shares

Question 32

Shares

Answer 32

A unit of ownership in a company that entitle the owner of the shares (the shareholder) to a proportion of any profitsthe comalny makes

Question 33

Dividends

Answer 33

Company profits paid to shareholders, in cash or in additional shares, in proportion to the number of shares they already own

Question 34

Capital growth

Answer 34

An increase in the value of an asset

Question 35

Share market

Answer 35

A market for trading shares in listed companies; also called a stock market

Question 36

Term deposits

Answer 36

Where investors can place their money for a fixed period of time, (range from 1 month to 5 years). The banks offer a higher rate of interest in such deposits compared with at-call deposits that can be withdrawn at any time

Question 37

Why are term deposits low-risk investments

Answer 37

Because the bank assures the return, but the return tends to be , lower then that obtained from owing other types of Investments such as shares

Question 38

What happens if investors choose to make an early withdrawal in term deposits

Answer 38

The funds in the term deposit are locked away until then end of the time period unless the investor chooses to make an early withdrawal, in which case penalty fees will be charged

Question 39

Managed fund

Answer 39

These are portfolios of shares, property, public infrastructure, private equity and other investments that are chosen by a professional fund manager

Question 40

What does investing in a manged fund do with regards to risk

Answer 40

Spreads the risk over different types of investments

Question 41

Do investors have a say in the manged funds investment descions

Answer 41

Sessions about tpenat to invest in are made by a professional, so investors have no say in the fund’s investment descions

Question 42

What fees do managed funds have?

Answer 42

Most funds have entry and exit fees and some have monthly fees

Question 43

Is it easy to access your money quickly in a manged fund?

Answer 43

It can be difficult to access money quickly due to the need for market settlement and potential or fees imposed by the fund manager