Commerce Term 1 Quiz 04/04/23

Which of these assets is the riskiest to invest in?

• Bitcoin

• Real Estate

• Shares

• Term Deposits

Name the following: A payment made regularly from a company to its shareholders.

• Duty

• Face value

• Dividend

• Bond

If you are short selling a stock, you hope:

• Its price will increase

• Its price will decrease

• Its price will remain the same

• Its price will remain stable

What term refers to the practice of investing in a wide range of stocks and assets?

• Interest

• Diversification

• Systematic Risk

• Portfolio Management

Which number provides an indication of your ability to repay a loan?

• Credit Limit

• Credit Minimum

• Credit Score

• Credit ID

Below are some advantages and disadvantages of paying and saving with cash. Select any disadvantages (may be more than 1).

• Loses value due to inflation

• Cannot be hacked

• Can be counterfeited

• Can be lost

Below are some advantages and disadvantages of investing in term deposits. Select any advantages (may be more than 1).

• Stable interest rate

• Withdrawal fees

• Money can be withdrawn a month after providing notice

• Investment is not risky

Suppose 1 AUD (Australian Dollar) has the same value as 0.6 British pounds. Which currency is more valuable?

• Australian Dollars

• British Pounds

What will a bank consider before offering you a loan (more than 1 answer may be correct)?

• Age

• Your credit score

• Your credit history

• Income

Choose the correct option to end the phrase accurately (multiple answers may be correct).

When budgeting, you should....

• Overestimate some costs if you are not sure how big they will be

• Assume nothing bad will happen

• Underestimate some costs if you are not sure how big they will be

• Consider every single possible thing that could happen