Role of financial institutions

1.

1 point

A good rule of thumb when borrowing money is to not have repayments of more than 10% of monthly income after tax.

True

False

2.

1 point

Methods of investing in stocks, bonds & other securities.

Ethical funds

Managed funds

Interest Earning Deposits

3.

3 points

Other Uses of ATM Debit Card are

making a deposit

withdrawing money

Transfer funds

screen display of statement

4.

1 point

Cards can be used when travelling overseas, in the place of traveller’s cheques.

True

False

5.

1 point

A balanced investment portfolio involves spreading the investment dollar between a range of investment options, in order to decrease the overall risk.

True

False

6.

3 points

Three types of shares are

Red chip shares

Speculative shares

Blue chip shares

Green chip shares

feel lucky shares

7.

4 points

Four types of Superanuation funds are

Industry funds

Securities funds

Corporate funds

Investment funds

Self-managed superannuation funds

Retail funds

8.

1 point

It is wise to carry large amounts of cash than use your credit card.

True

False

9.

4 points

Short-term Credits you can apply for are

retail store cards

debit cards

bank overdrafts

Pay-day loans

Amex cards

credit cards

10.

2 points

Standard website security check include

web browser shows a closed padlock icon to indicate website is secure

address at the top of the page starts with https:// where 's' means website is secure

that http:// informs you the website is secure

URL has 'gov' and 'au' at the end

11.

1 point

An ethical investor is a person who choses which shares to buy, based on the values they hold.

True

False

12.

1 point

Identity Theft is a type of fraud in which a person steals money by pretending to be someone else.

True

False

13.

1 point

Superannuation is a way of saving, by putting money aside for retirement.
In Australia, employers are required to do this by law, and individuals also contribute to superannuation funds.

True

False

14.

5 points

Reconciling a bank statement involves

bank statements

collecting together all receipts

online money payments

collecting ATM withdrawal slips

transfer records

Cheque butts

15.

2 points

Things I can do if my identity is stolen.

ring up the security company

hire a private investigator

Report it to the police immediately.

contact my bank

16.

4 points

Four issues an ethical investor will consider before buying the company's shares are

Energy & resource consumption

Quality of company's premesis

Labour practices & work environment

Protection of environment

Repressive governing regimes

17.

1 point

Credit is when a financial institution lends person money right now, in exchange for an agreement that it will be paid back within a specified time limit.

True

False

18.

3 points

Three examples of personal accounts are

Debit Card Account

Credit Card Account

Savings Account

Young Adult Account

Transaction Account

19.

1 point

An overdraft allows you to spend more than what is currently in your bank account.

True

False

20.

1 point

Shares are investment in a business where the shareholder pays money & owns part of the business in return.

True

False

21.

1 point

In this type of loan, money borrowed is only needed for a short amount of time, usually until pay day.

Mortgage

bank overdraft

Pay day Loan

22.

1 point

Employees can access their superannuation fund at any time.

True

False

23.

1 point

Employers are required to contribute a minimum of 9% of what employees earn to a super fund.

True

False