What type of loan allows an individual or business to continue withdrawing money even if the account has no funds in it?
Overdraft
100
What is the most preferred method of repayment?
Direct debit as automatic payments make it simple and easy to ensure payments are made on time.
100
Which form of finance is most suitable for a person wanting to establish a computer repay business that is operated from home?
small business loan e.g. business equity access loan (Westpac) to borrow $20,000 to $1,000,000.
100
Does the Reserve Bank of Australia offer home loans?
No, because the Reserve Bank is not a commercial bank and exists for the stability of Australia's financial system.
200
Gail Kelly is the CEO of which bank?
Westpac
200
Which of the following allows EFTPOS access and links to a credit card?
a) Standard Variable Rate Home Loan
b) Portfolio Loan
c) Low Doc Home Loan
b) Portfolio Loan
200
If an individual has made additional payments on their loan, are they eligible to redraw them?
Yes, you may be eligible to withdraw that money or even stop making payments for a while.
200
Would a business overdraft be more suitable for business experiencing:
a) short term cash flow problems
b) long term cash flow problems
a) short term cash flow problems
200
Are you able to change your repayment amounts on personal or home loan loans?
Yes provided that is equal or greater than your minimum loan repayment amount.
300
Which bank did the Commonwealth acquire and in what year?
Bankwest, 2008
300
What is a portfolio loan?
A portfolio loan enables small business owners to combine their business loan, personal finances and investment needs into one convenient, flexible line of credit.
300
List three options in which individuals can make their repayments.
If Mark is a venture capitalist, would he want to invest in start up businesses or established businesses.
Venture capital is a specific kind of share investment that is made by funds managed by professional investors. Venture capitalists tend to invest into ESTABLISHED businesses.
300
If an individual needs to borrow more than $1 million, what type of business loan do they require?
Commercial Business Loan
400
What is the name of the policy that prevents any merger or acquisition between the four major banks?
The Four Pillar Policy
400
Can a business loan variable be used to fund working capital shortfall?
No. It is designed to fund capital expenditure for long term investment and/or business purposes.
400
What is a repayment holiday?
A repayment holiday gives an individual the option of putting their repayments on hold for 3 to 12 months. It gives more flexibility to suit an individual's lifestyle, whether they are planned or unplanned.
400
If a small business was looking to borrow less than $1 million from Westpac, which of the following would be the best option?
a) Business Access Loan
b) Business Overdraft
c) Premium Business Choice Loan
b) Business Overdraft
400
Name three types of home loans.
Variable Rate home loans, fixed rate home loans, part variable/ part fixed home loan, line of credit loan
500
What is Australia's largest customer-owned bank?
Heritage Bank (formerly known as Heritage Building Society)
500
Which of these is not a benefit of an overdraft?
a) fixed interest rate
b) pay interest only on the funds you withdraw
c) used to smooth out dips in cash flow such as seasonal fluctuations
d) can generally be secured by a mortgage over residential or commercial security
a) fixed interest rate
500
What is the minimum redraw for a variable rate at Commonwealth Bank?
$500
500
ANZ offers businesses a formal bank guarantee to pay a financial obligation to a third party. This is done so small businesses don't have to pay back their suppliers or partners so soon. What is the guarantee called?
a) Indemnity Guarantee
b) Credit Facility Guarantee
c)Direct Dealer Access
a) Indemnity Guarantee
500
Westpac's Business Equity Access Loan is their lowest variable rate small business loan, allowing businesses to borrow $20,000-$1,000,000. What would their loan term be?
a) 3-6 months
b) 1-3 years
c) 1-7 years