ITC - financial literacy

What is the primary purpose of a savings account?

• To earn high returns on investments

• To safely store money and earn interest

• To invest in the share market

• To buy property

Which of the following is a common investment option for teenagers?

• Superannuation

• Term deposits

• Managed funds

• Cryptocurrency

What is a key benefit of having a diversified investment portfolio?

• Higher risk

• Lower potential returns

• Reduced risk

• Increased fees

Which type of account is specifically designed for retirement savings in Australia?

• Savings account

• Superannuation account

• Current account

• Term deposit account

What is the ASX?

• Australian Savings Exchange

• Australian Securities Exchange

• Australian Stock Exchange

• Australian Share Exchange

Which of the following is a characteristic of managed funds?

• Direct ownership of shares

• Professional management

• Guaranteed returns

• No fees

What is a common financial risk associated with buying property?

• Inflation risk

• Liquidity risk

• Currency risk

• Interest rate risk

Which of the following is a digital currency?

• Bitcoin

• Euro

• Yen

• Dollar

What is the main advantage of compound interest in savings?

• It decreases over time

• It remains constant

• It increases the amount of interest earned over time

• It only applies to large amounts

Which of the following is a potential reward of investing in the share market?

• Guaranteed returns

• High liquidity

• Capital gains

• No risk