Year 9 Summative Test 2

what is a deposit-taking institution?

• a business

• a government department

• an institution allowed to deposit money into people's accounts for interest

• an institution allowed to take deposits from people's accounts for savings

True or False: making financial decisions has both risks and rewards.

• True

• False

What are some ways to minimise the risks of managing money and making investments?

• smart and sensible decision-making.

• don't manage your money and make no investments.

• choosing the first option that appears without any research.

• spending all of your pay before you receive your next pay.

Which of the following are deposit-taking institutions in Australia?

• supermarkets, clothing stores and hardware stores.

• banks, credit unions and building societies.

• schools, banks and companies.

• Coles, Woolworths, Bunnings.

True or False: there are only 4 banks and 2 types of loans in Australia.

• True

• False

Some investment options to increase your return are:

• keeping your money in a money box.

• buying and selling a lot of toilet paper during a pandemic.

• property, term deposits, shares and managed funds.

• keeping money in your bank account.

True or False: all investments have the same levels of risk and reward.

• True

• False

What are some reasons to be aware of and cautious about financial risks?

• missing out on investment opportunities.

• liquidity.

• insurance and savings.

• scams and identity theft.

what are the four main types of financial risk?

• liquidity, credit, market, operational

• market, credit, term deposits, scams

• identity theft, debt, liquidity, operational

• credit cards, market, scarcity, opportunity cost

What are some ways to protect yourself from financial risk?

• having a job.

• not making any investments.

• insurance, savings and superannuation.

• talking to banks, credit unions or building societies.