HASS-economics

Question 1

savings

Answer 1

putting money aside to spend at a later date.

Question 2

investing

Answer 2

putting money into shares, property or other financial schemes in the hope of making a profit.

Question 3

deposit

Answer 3

a sum of money paid into an account

Question 4

interest rate

Answer 4

the amount a borrower must pay a lender for the use of assets

Question 5

debt

Answer 5

sum of money that is still owed

Question 6

how do banks make money through deposits

Answer 6

by paying you a low interest rate and lending that money to others at a higher rate,

Question 7

simple interest

Answer 7

multiplying the interest rate by the principal and then multiplying by the number of periods

Question 8

compound interest

Answer 8

interest that is earned from a deposit or loan is added to the original deposit or loan. This added interest also earns interest in the future

Question 9

bad debt

Answer 9

money owed to a business that is unlikely to be collected

Question 10

good debt

Answer 10

borrowing that helps you achieve financial growth

Question 11

investment risk

Answer 11

the likelihood of loosing money on a financial scheme

Question 12

investment risk tolerance

Answer 12

the degree of loss an investor is willing to accept while making investment decisions

Question 13

interest earning investments

Answer 13

financial assets that generate income through interest payments

Question 14

property

Answer 14

real estate that has been purchased with the intention of earning a return on the investment

Question 15

equities

Answer 15

shares in a company- the shareholder holds equity or a stake in the company

Question 16

superannuation

Answer 16

saving for retirement- contributions are made by the employer and employee

Question 17

injections

Answer 17

any income entering the economy and therefore increasing economic activity

Question 18

leakages

Answer 18

any income leaving the economy and therefore reducing economic activity

Question 19

taxation

Answer 19

money collected from individual incomes or business profits by the government

Question 20

government spending

Answer 20

government spending money on social security and welfare payments, infrastructure collective goods and services.

Question 21

imports

Answer 21

bringing goods into a country from abroad for sale

Question 22

exports

Answer 22

goods and services produced in Australia but sold overseas