Definitions
Putting money into a bank account
Deposit
Invest $2,000 at 5% per annum simple interest for 3 years. Calculate the interest earned.
$300
The number of banks listed in the top 50 companies
4
Type of low-risk investment that allows customers to withdraw money while still earning interest
Savings Account
Explain a diverse share portfolio
Money spread across different types of companies
The length of time over which a loan is scheduled to be repaid or an investment is held
Term
You purchase 500 shares at $3.50 each. Calculate the total cost.
$1,750
The current price of Woolworths shares (within $1)
$39.16
Type of low-risk investment that locks your money away for a fixed time period with guaranteed interest.
Term Deposit
List the big 4 banks
NAB, CBA, WPC, ANZ
A long-term savings plan for retirement, where contributions are made by employers and/or individuals, with tax benefits
Superannuation
A simple interest loan of $2,500 earns $375 over 2 years. Calculate the interest rate as a percentage.
7.5%
The current Market Capital of BHP
$306.61 Billion
Doing this generally lowers your interest rate or incur fees on a term deposit
Withdrawing before specified term
The main reason for a company to list on the sharemarket
Raise capital to grow the business
Interest paid/earned on top of the principal and interest already earned
Compound Interest
You deposit $4,000 into a savings account for 18 months and earn $360 in simple interest. Calculate the annual interest rate.
The 2 types of Vanguard ETFs listed in the top companies
MSCI Index International & Australian Shares
A feature of a savings account to encourage customer to make additional deposits
Bonus Interest
Spreading investments across different assets or asset classes to reduce risk and create a balanced portfolio.
Diversification
You sell 200 shares for $3.10 each. You originally bought the shares for $2.50 each and paid $20 brokerage both to buy and sell. Calculate the total gain/loss
$80
The only company in the telecommunication services industry listed in the top 50 companies.
Telstra Group Limited
A bank is offering a ‘flexi-term deposit’, advertising a fixed interest but states that the bank may adjust the interest rate based on changing market conditions. State the feature that clearly indicates that it is not a traditional term deposit
The bank can change the interest rate during the term