Definitions
Allocate resources such as money to an asset, with the goal of seeing a growth in its value. It starts with the letter I
Investment
What is an expense?
Money spent on a good or service
What is the relationship between risk and return?
Higher the risk, higher the return
What is a term deposit?
An investment where money is locked away for a fixed period of time and earns interest
What are the three levels of government
Local, State, Federal
The exchange of something within ones country. It starts with the letter D
Domestic
Identify the expenses: Spotify subscription, Term Deposit, Airpods
Spotify Subscription and Airpods
What is the formula for rate of return
Rate of Return = Profit from the investment/original investment x 100/years
If I said a term deposit has a fixed interest rate what does that mean
The term deposit will have the same agreed interest rate and that doesn't change
What is the highest court in Australia
The high court
Increase in an assets value. The answer is two words
Capital Growth
A student does one shift a week at Coles and earns $250. They spend $20 on lunch, $10 on transport to get there, $60 to by a game for there playstation and $10 at the canteen. How much is left for investing?
$150
Identify two defensive assets
Cash, Government Bonds, Blue Chip Stocks, Gold, Property
A student invests $1,000 in a term deposit at 5% interest for one year. How much interest will they earn?
$50
What is the process to amend the constitution
You need to have a referendum where a majority of people in a majority of states agree with the question
Paul Keating was responsible for making this universal
Superannuation
Which of the following is an asset that could help you invest in the future?
A) Phone
B) Savings account
C) Concert ticket
B
Fiona buys a unit for $100,000 and sells it for $127,500 calculate the rate of return two years later?
13.75%
Why might a term deposit be a good option for an investor?
- Low risk
- Guaranteed return
- Security of money
When was the last minority government formed?
2010
Stocks in industry leaders that are well established and financially sound companies with a history of reliable performance.
Blue Chip Shares
A student wants to start investing but says they “don’t have enough money.” Based on budgeting principles, what advice would you give them to improve their situation?
Compare a Term Deposit and Shares which would suit a cautious investor and why?
Term Deposit - Lower Risks and Lower Returns
What is a disadvantage of having your money locked in a term deposit for a fixed period?
When you include both the lower and upper house how many times is a bill read?
6