Small Business and Economics - Medium

Most banks offer term deposits which are accounts which:

• A. Pay a higher level of interest but you must leave the funds with the bank for a set period of time e.g. 3, 6 or 12 months
• B. Pay a lower level of interest but you can withdraw the funds whenever you choose
• C. Pay a higher level of interest and you must add more deposits to the amount in the bank each 3, 6 or 12 months
• D. Pay a low level of interest and you must add more deposits to the amount in the bank each 3, 6 or 12 months

Which of the following statements concerning superannuation is false?

• A. Superannuation is form of investment that everyone makes as they enter the workforce
• B. Your employer must put an additional amount, which is a set percentage of your wage into it each month
• C. You can access your Superannuation fund whenever you need
• D. You can make contributions to your Superannuation fund in addition to what your employer pays in for you

An investor may take into account a range of factors when deciding whether or not to invest in a company. Factoring in whether the company is acting in the best interests of society and the environment are known as:

• A. Investment strategies
• B. Economic considerations
• C. Valuable considerations
• D. Ethical considerations

Which of the following payment methods is NOT evidence in the belief that money is becoming less visible?

• A. Pay by phone
• B. Tap and go
• C. Cash sales only
• D. Online shopping

Which one of the following people will be most advantaged/better off financially at the end of one year?

• A. Aaron who earns $100 per week but lives with his parents who pay for all his expenses
• B. Billy who earns $100 per week and who pays his parents $20 board per week but has no other expenses
• C. Candice who earns $200 per week but has expenses of $110 per week
• D. Darius who earns $300 per week but has expenses of $220 per week

Which of the following people will be the most financially disadvantaged/worse off at the end of one year?

• A. Aaron who earns $100 per week but lives with his parents who pay for all his expenses
• B. Billy who earns $100 per week and who pays his parents $20 board per week but has no other expenses
• C. Candice who earns $200 per week but has expenses of $110 per week
• D. Darius who earns $300 per week but has expenses of $230 per week

When people ask about a loan a bank will generally want to know what ‘assets’ they own – this refers to :

• A. Something their parents own which they might one day inherit
• B. Something they one day hope to buy
• C. Something owned or controlled that will provide economic benefits into the future
• D. Something only of personal but no financial value such as a photo of a dog

Which of the following is NOT a recommended strategy to manage your personal finances effectively?

• A. Look for opportunities to increase your income
• B. Bet weekly on sporting teams which are based in Victoria
• C. Understand financial information and take control of financial decisions
• D. Maintain good financial records

A tip to save money is to avoid impulse buying – this refers to:

• A. Buying items on the spur of the moment
• B. Only buying items on a shopping list
• C. Only buying items you have budgeted for
• D. Only buying items you have saved for

Select the following incorrect statement concerning preparing your own personal budget for the next 12 months:

• A. A budget can help you to achieve your financial goals
• B. Budgets also provide a greater level of control over your finances
• C. Budgets require every item you will buy in the next 12 months to be specifically listed
• D. Budgets help keep control of expenses