Investing

Which of the following is a form of business investment?

(May select more than one)

• New machinery

• Factories

• Employee Skills and Training

• Research and Development

Dividends are...

• part of a firm’s profit that is divided amongst shareholders

• part of personal profit to share with family

• Interest on savings

• A form of superannuation contributions

Governments invest in order to improve their profitability.

• True

• False

Which of the following is a form of borrowing that uses collateral?

• Shares

• Secured Debt Finance

• Unsecured Debt Finance

• Managed Fund

Secured loans have higher interest rates than unsecured loans.

• False

• True

Which of the following is true about superannuation?

• 11.5% per annum

• Paid by employees

• Paid by employers

• Voluntary form of investment

Which of the following is false about term deposits?

• Fixed period of time (term)

• Matures at the end of the period

• Can choose how often interest is paid

• Able to access funds whenever you like

A share is:

• a percentage of interest earned

• only paid on business profits

• part ownership of a business

• private equity

Which of the following investments would be most at risk of interest rate increases?

• Term Deposit

• Property

• Cash Management Account

• Cryptocurrency

An investor has control of their assets in a managed fund.

• True

• False