9BFM revision quiz

Which of the following are financial institutions?

• ANZ

• Westpac

• ING

• Credit Union Australia

• BHP

Financial institutions are

• Banks

• Credit Unions

• Building Societies

• All answers are correct

Banks make money

• through interest charged in relation to loans

• by charging fees e.g. monthly fees, fees to transfer funds, late payment fees

• by paying interest to customers who have savings accounts

• from interest charged on credit cards

Why do banks aim to make money?

• They are public companies.

• They have a responsibility to make a profit so share prices increase.

• They need to pay associated costs e.g. salaries of staff, electricity and rent for branches

• All answers are correct

A secured personal loan

• is used for a specific purpose disclosed to the bank

• can be used to buy any product desired

• can only be used to purchase an expensive item e.g. house or car

• all answers are correct

Examples of a secured loan would be

• borrowing $500 000 to purchase a home

• borrowing $30 000 to purchase a new car

• borrowing $1000 to purchase a laptop

• borrowing $5000 to spend on a range of items

A bank account used to cover daily expenses which does not earn any interest

True or False? Banks will pay interest on a savings account.

• True

• False

EFTPOS stands for

• Electronic Funds Transaction Place of Sale

• Emergency Funds To Purchase Optimum Special

• Electronic Funds Transfer Point of Sale

• Emergency Funds Transfer Point of Sale

When paying via EFTPOS

• funds are immediately deducted from the customer's account

• money is transferred to the retailer as soon as the payment clears

• the customer has 30 days to make the payment

• the customer can cancel the payment within 24hrs to void the transaction