Revision

Question 1

What Is A Term Deposit?

Answer 1

Higher level of interest = Specific amount of time the money has to stay in the bank

Question 2

What Is Compound Interest?

Answer 2

Both the money and the interest combined, are multiplied by the given interest

Question 3

What Is Interest?

Answer 3

Extra money earned on the money you have in a savings account

Question 4

What Does An “At Call Account” Do?

Answer 4

Where interest is paid however, savings can be accessed straight away

Question 5

Diversification

Answer 5

Money over a wide spread of investments to reduce risk

Question 6

What Does ASX Stand For?

Answer 6

Australian Stock Exchange

Question 7

What Are Shares?

Answer 7

A unit of ownership in a company

Question 8

What Is A Dividend?

Answer 8

Amount paid to shareholders that is a % of the companies profit

Question 9

List Pro’s Of A Share Market

Answer 9

• Buy and Sell shares quickly /wo needing a lot of money
• Money back in 3 day’s (usually) aka. Liquidity
• Use dividends to get more dividends
• 50% discount on tax after 12 months of holding a share

Question 10

List Risk’s Of A Share Market

Answer 10

• Tax’s
• The market is volatile aka. Constant change

Question 11

What Is Supper Annuation?

Answer 11

Super is a way of saving for retirement in which an employer pays a % of your pay in

Question 12

List Benefits Of Super

Answer 12

• Pay less income tax
• Pay less on investment return
• Long-term growth
• Automatic health coverage wo/ health checks
• Protection against bankruptcy
• Tax free retirement

Question 13

List Negatives Of Super

Answer 13

• Strict access rules
• Fees/Taxes
• Limited pre-tax contribution

Question 14

List Real Estate Types

Answer 14

• Residential
• Commercial
• Industrial
• Rent/lease

Question 15

Super Guarantee

Answer 15

The Super Guarantee is a compulsory contribution made by employers into their employees’ superannuation accounts, currently set at 11.5% of their regular earnings.

Question 16

List “At Call” & “Term Deposit” Differences

Answer 16

• More interest on TD
• Have to wait to deposit a TD acc, while you can access a AC acc straight away

Question 17

List “At Call” & “Term Deposit” Similarities

Answer 17

• Both gain interest
• Both low risk
• Place to save money

Question 18

Good Aspects Of Shares As An Investment Option

Answer 18

• G: Passive income, capital growth
• G: Flexibility
• G: Maximize on the taxations
• G: Get money back fast

Question 19

Bads On Shares As An Investment Option

Answer 19

• Bad: Tax’s
• Bad: Lack of knowledge on the stock prices and values. aka can’t sleep at night

Question 20

Who Is SAM?

Answer 20

A CHICKEN
SEMI-AUTOMATIC-MACHINEGUN
:3