Business Exam- revision Flashcards
Revise proper vocabulary and important aspects of businesses
What is a building society?
A building society is a financial institution which resembles a credit union.
What is a savings plan?
A financial plan that you expect to reach the goal amount of money you want
What is super annuation?
The money that stays in an account and is invested so it can earn interest and grow.
Name 3 different types of incomes
Salary, Wage, Interest-received, dividend
What does TFN stand for and what is it?
TAX FILE NUMBER- A tax file number is a unique identifier issued by the Australian Taxation Office to each taxpaying entity
What is interest?
The relationship between the amount of money borrowed or lent and the money paid in return for the use of that money. Usually expressed as a percentage per year
What is a bank? How does it help you save?
A bank is a financial institution that accepts deposits from the public and creates credit. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively
Name 2 ways of identifying yourself in order to open a bank account
Passport, driver’s license, state-issued identification card
What is debt?
Debt is when something, usually money, is owed by one party, the borrower or debtor, to a second party, the lender or creditor
What should you do if you fall into debt?
Talk to a financial adviser, create a budget, call your lender, reach out to family of friends for financial advise
Name 3 different types of credit
Store card, payday loans, personal loans, interest-free deals, after-pay
List 1 pro and 1 con of having a credit card
Overseas transactions can be made much more easily, you will most likely have to pay back more than you borrowed
Name 2 different types of fees
Annual fee, monthly account keeping, atm transaction fee
List 2 benefits of saving money
Future planning, retirement plans, pathways to different careers, purchasing items of your choice
What is a credit report?
It’s a record about you, all your past credit applications and missed payments. It is brought up by lenders when you are applying for loans or other types of credit
