Financial litercay key terminolgy

Question 1

Saving

Answer 1

Money set aside to spend later

Question 2

Investing

Answer 2

Putting money into shares, to make a profit

Question 3

Simple interest calculation

Answer 3

multiplying the interest rate by the principle, 1% of $600= 600/100=6
initial+interest= 600+6=$606

Question 4

compound interest calculation

Answer 4

Interest earned from a deposit or loan that is added

Question 5

Interest rate

Answer 5

The amount a borrower must pay to a lender for the use of assets such as money

Question 6

Principle

Answer 6

Money that was originally invested or loaned

Question 7

Deposit

Answer 7

The sum of money put into an account

Question 8

Shares

Answer 8

Units of ownership in a publicly listed company

Question 9

Shareholder

Answer 9

A person that have money invested into a company

Question 10

Investment risk

Answer 10

The likelihood of losing money after investing

Question 11

Share market

Answer 11

A market in which shares are bought and sold from listed companies

Question 12

Australian Securities Exchange (ASX)

Answer 12

Operates Australia’s primary securities exchange, shares are traded in the ASX

Question 13

Scams

Answer 13

A scheme that is dishonest and takes something (money)