Banks
What is a mortgage?
Money advanced by a bank, credit union or building society to a person for the purchase of a house or other property. The property itself is used as security for the loan, allowing the lender to seize the property if the borrower fails to make regular payments.
Name 2 "specific" types of scams.
Online dating scams, prize or lottery scams, computer virus scams, charity scams, pyramid scheme scams, parcel scams and product scams.
What is the difference between innovation and invention?
Invention is the process of developing a product which results in the creation of something entirely new. Innovation differs as it is the process of improving a product that already exists.
Define consumer.
A person who purchases or uses goods and services for personal, domestic, or household use.
Name 3 costs incurred by a business.
- Wages and other employee-related costs
- Rent or mortgage repayments
- Financial costs (e.g. interest on a loan)
- Insurance
- Cost of materials from suppliers
- Advertising and other marketing costs
Name 3 different banks which operate in Australia?
CBA, NAB, ANZ, Westpac, Suncorp.
Others: Bank of Queensland (BOQ), Bendigo and Adelaide Bank, Macquarie Bank, Heritage Bank / People First Bank, RACQ Bank.
What type of scam is this?
Your package could not be delivered due to an incorrect address. Please click the link below within 24 hours to update your details and pay a $2.50 redelivery fee.
Provide an example of a customer loyalty program.
Flybuys, Everyday Rewards, Qantas Frequent Flyer, Priceline Sister Club. Other possible answers.
Explain the ACCC and their connection to ACL.
Net profit = total revenue - ??
Net profit = total revenue - total expenses (costs)
Explain the difference between good and bad debt.
Good debt helps build wealth or increase value over time (e.g., a home loan or education loan), while bad debt is used for things that lose value or do not generate future benefits (e.g., credit card debt for non-essential purchases).
What does ACCC stand for?
Australian Competition and Consumer Commission
What is predatory pricing?
When a business deliberately sells products below cost to force competitors out of the market. Once competitors leave, prices may increase.
Name the 4 consumer guarantees.
Safe, durable, fit for purpose, match the description.
What is research and development?
Activities undertaken to improve existing products or create new products.
Explain two services that banks offer.
Savings accounts allow people to store money securely while earning interest.
Loans provide money for large purchases such as homes, cars and businesses.
How can consumers protect themselves from scams? Provide 3 answers.
What is price fixing?
When competing businesses secretly agree on prices instead of allowing competition. This usually leads to higher prices for consumers.
Provide 2 reasons why consumers may change their purchasing decisions over time.
- Changes in income: People with higher incomes may buy more expensive products, while lower incomes may reduce spending.
- Change in prices: Consumers may buy less of a product if its price increases.
- Changes in tastes and preferences: trends, advertising and lifestyle changes can influence what people choose to buy.
How can businesses reduce their costs? (2 examples minimum)
- Improving efficiency and reducing waste
- Use technology and automation to complete tasks faster and with fewer errors
- Training employees can increase productivity and improve performance
- Buying materials in bulk to reduce costs through economies of scale
- Negotiate better supplier deals or source a cheaper manufacturer but retain the same quality
- Delivery savings
Describe how banks help individuals and businesses manage their money.
What type of scam is this?
A friend tells Mia about an "exclusive investment opportunity." She pays $500 to join and is promised large profits if she recruits more people. Most of the money she earns comes from the joining fees of new members rather than from selling any real product or service. When recruitment slows down, many members lose their money.
Pyramid scheme scam
Explain misuse of market power.
When a large business uses its dominance unfairly to damage competitors or prevent competition. This can reduce consumer choice and create an unfair market.
Explain 3 responsibilities that businesses have under Australian Consumer Law when selling products or services to consumers.
1. Meet consumer guarantees (safe, fit for purpose, durable and match description).
2. Avoid misleading or deceptive conduct, meaning they must not make false claims about products or services.
3. Provide remedies when consumer guarantees are not met, such as offering repairs, replacements or refunds when products have major faults.
Explain how Rosey the Robot benefited Jane Jetson who bought her?
Automation benefits a business by using technology to complete tasks automatically, improving efficiency and reducing costs.