Small Business and Economics - Easy

The term EFTPOS stands for:

• A. Effective free trade at point of sale
• B. Electronic funds trade at point of sale
• C. Electronic funds transfer at point of sale
• D. Electronic funds transfer in protection of sales

Money has many functions in society – select the INCORRECT statement below concerning functions of money:

• A. Money is a measure of wealth.
• B. Money allows all people to share equally in the world’s resources.
• C. Money enables people to assign a specific value to all goods and services, making price comparisons easier.
• D. Money is widely accepted and easily divided.

The term PIN, in relation to bank cards, stands for:

• A. Personal identification number
• B. Primary identification number
• C. Personal information number
• D. Primary information number

The main difference between a credit card and a debit card is that:

• A. The interest rate you pay for purchases is much higher on a debit card
• B. A debit card allows you to borrow money to fund your purchases
• C. With a debit card you are accessing your own funds
• D. With a credit card you are accessing your own funds

Gift cards are often seen as a win for both consumers and retailers. Select the one INCORRECT fact or statistic concerning gift cards from the following:

• A. It is estimated that in 2018 there will be around $160 billion dollars worth of gift cards sold.
• B. Consumers are likely to spend around 40 per cent more than the value of the gift card when they redeem it.
• C. Gift cards provide flexibility to the recipient to buy what they really want.
• D. It is estimated that over 80 per cent of gift cards are never redeemed or lost before they expire.

Which of the following is NOT a feature of a credit card:

• A. Credit cards generally allow access to unlimited credit.
• B. In Australia, if a customer uses the tap and go feature when using a credit card and the amount is less than $100, a PIN will not be needed.
• C. Credit card statements will set out the minimum payment required for that month.
• D. The annual interest payable on a credit card debt can vary from approximately 8 per cent per annum to just over 20 per cent per annum.

Which of the following payment methods is not a recent example of technology changing the way we pay?

• A. In-app purchasing
• B. Smart cards
• C. e-TAGs
• D. Cheques

The key to using credit is that:

• A. You need to keep spending to save money in the long term
• B. You must be able to pay it back on time
• C. You will always need to use credit if you wish to get ahead in life
• D. You will save money by always buying on credit

Which of the following will generally NOT be a realistic option for people wanting credit?

• A. Asking a store for credit
• B. Credit card
• C. Store card
• D. Personal loan

Which of the following is NOT a key advantage of using credit?

• A. The ability to purchase items immediately
• B. Convenience, particularly with internet purchases such as airline tickets
• C. Credit purchases incur a range of fees and charges
• D. The ability to take advantage of special offers, such as interest-free credit terms