Financial Risks and Rewards

Two main reasons for managing finances are?

• Escape rewards

  Avoid risk

• Obtain rewards

  Minimise risks

• Obtain risks

  Minimise rewards

• Avoid rewards

  Escape risk

In order to manage finances, it is a good idea to set (a)  

Poor financial management can lead to what type of consequences?

• social

  fines

  legal

• fines

  debt

  social

• financial

  legal

  political

• financial

  social

  legal

Failure to repay debts could result in?

• repossession of goods

• money taken from wages

• risk of being sued

• bankruptcy

What type of investment is a simple account offered by a financial institution that aims to grow savings faster than a basic transaction account.

• Fixed-term deposit

• Savings account

• Bonds

• Managed fund

What is the lump sum or regular payments individuals receive when they retire?

• Managed Funds

• Superannuation

• Super

• Dividends

What is the name given to units of ownership in a company where the shareholder receives part of the company's profits?

• dividends

• shares

• interest

• profit

Physical assets that increase in value over time because they are rare or highly desirable are called (a)  

Shares are bought and sold on the ...

(a)  

A shareholder may receive these if a company has already paid tax on its profits.

• shares

• dividends

• interest

• bonus