9 BFM Term 2 Pretest Financial Risks and Rewards

A BSB is needed when making an online payment in order to ensure that ....

• The correct amount is taken from your account

• The payment does to the right account

• The payment goes to the right bank

• You are the authorised owner of the account

Banks can charge fees when you make a payment using

• Another bank's ATM

• EFTPOS

• A contactless card

• All of the above methods

'Net Worth' refers to...

• How much you would have left if you paid off all of your debts

• Assets minus Liabilities

• The difference between what you own and what you owe

• All of the above

Buying an electrical appliance on interest free terms means that...

• You should repay the loan before the interest free period expires

• Credit is provided by the retailer who sells the goods to you in the first place

• There's no advantage in making any repayments until the interest free period is finished

• No interest is charged on the outstanding balance at the end of the interest free period

A direct debit payment....

• Can only be used if the amount is always the same

• Can be for a fixed or variable amount

• Is guaranteed to be a secure way to pay your bills

• Can only be used with a credit card

Guesstimate (approximate) question. Sasha owes $2000 on her credit card with an interest rate of 18%. She decides to stop using it and cut it up but only repay the minimum amount required of $41 (decreasing) per month. How long does it take Sasha to pay off the card?

• Just over one year

• Less than 3 years

• About 10 years

• More than 15 years

Guesstimate (approximate) question. How much interest (on top of what she already owes) do you think Sasha will be charged if she only makes the minimum payment each month?

• Just under $250

• About $500

• Nearly $1000

• Over $3300

A transaction bank account is useful...

• To pay your bills

• To make your savings grow faster

• If it's necessary for more than one person to operate the account

• If you don't want to pay account keeping fees

Who can fall prey to online scams?

• Scammers mostly target lonely people

• Older people who are not used to social media

• Anyone using the internet

• People who are gullible

If you pay $110 for a new pair of shoes, the GST component is...

• $1.00

• $10.00

• $11.00

• Only able to be calculated if you know the wholesale price