Income & Spending

Question 1

Direct Credit

Answer 1

An electronic transfer of funds, initiated by the payer, which sends funds directly into the bank account of the payee

Question 2

Direct Debit

Answer 2

An arrangement made with a bank that allows a third party to transfer money from a person’s account on agreed dates, typically in order to pay bills

Question 3

Debit Card

Answer 3

A card allowing the holder to transfer money electronically from their bank account when making a purchase

Question 4

Credit Card

Answer 4

A small plastic card issued by a bank, building society, etc., allowing the holder to purchase goods or services on credit

Question 5

Automatic Payment

Answer 5

An automatic payment is a regular payment that is set up and controlled by you. The payment is always the same amount

Question 6

E-Commerce

Answer 6

Commercial transactions conducted electronically on the internet

Question 7

Gross Pay

Answer 7

The amount before any deductions. (pay rate x hours worked)

Question 8

Net Pay

Answer 8

Gross Pay - All deductions. Actual amount you would receive as worker

Question 9

Superannuation

Answer 9

Savings scheme workers contribute towards retirement funds. (gross pay x employee contribution % - gross pay x employer contribution %)

Question 10

PAYE

Answer 10

Pay As You Earn - Income tax based on the amount you earn

Question 11

Union Fee

Answer 11

Fees you pay to belong to the union. Workers belong to the union the protects their working conditions and rights

Question 12

YTD

Answer 12

Year To Date - shows amount up to a point in time

Question 13

Taxable Allowance

Answer 13

Extra income that you receive which will be subject to tax

Question 14

Non-Taxable Allowance

Answer 14

Extra income that you receive which will not be taxed

Question 15

Meal Allowance

Answer 15

Extra income given to workers when they work overtime through a meal break

Question 16

Ordinary Time

Answer 16

8 hour day or 40 hour week

Question 17

Overtime

Answer 17

Hours above ordinary time

Question 18

Time and a half

Answer 18

1.5 x hourly wage rate

Question 19

Double Time

Answer 19

Pay rate x 2

Question 20

Triple Time

Answer 20

Pay rate x 3

Question 21

Days In Lieu

Answer 21

Extra day/holiday is given for working a public holiday

Question 22

EFTPOS

Answer 22

Electronic Funds Transfer at Point of Sale

Question 23

PIN

Answer 23

Personal Identification Number

Question 24

Barter

Answer 24

Barter is the exchange of goods and services without using money

Question 25

Commodity Money

Answer 25

Commodity money is where the object has value itself as well as value in buying goods

Question 26

Problems with Barter?

Answer 26

Lack of common measure

Question 27

Problems with Commodity Money?

Answer 27

Fluctuation

Question 28

Batercard

Answer 28

A bartercard is a ‘trade exchange’ system in which businesses can trade their goods and services with other businesses around the world. Bartercard operates in 8 countries including New Zealand.

Question 29

Legal Tender

Answer 29

Coins or banknotes that must be accepted if offered in payment

Question 30

Cheque is considered legal tender. True or False?

Answer 30

FALSE. A cheque is not considered legal tender because it is not mandatory to accept in offer of payment.

Question 31

Reserve Bank of New Zealand

Answer 31

Manages New Zealand’s foriegn exchange reserves.

Question 32

Money Qualities

Answer 32

durability, portability, divisibility

Question 33

Defaced

Answer 33

when banknotes contain words, drawings, symbols and signs written or inscribed deliberatatly in the surface.

Question 34

Demonetised

Answer 34

stripping a currency unit of its legal tender status

Question 35

NZ Banknote Features

Answer 35

- Puzzle number - Serial number - Colour-changing bird - Raised ink - Metallic numbers and bird - Metallic ferns and map - Metallic 3D number - Embossed number - Large transparent window with an intricate border - Fern window

Question 36

Wages

Answer 36

usually paid by the hour e.g. $11/hour. A fixed regular payment earned for work or services, typically paid on a daily or weekly basis.

Question 37

Wages - Advantages

Answer 37

- overtime pay is guaranteed | - typically short term or on an open contract (easy to switch jobs)

Question 38

Wages - Disadvantages

Answer 38

- typically short term or on an open contract (not necessarily secured) - generally earn significantly less than those with a salary

Question 39

Salary

Answer 39

a fixed regular payment often expressed as a yearly sum but paid monthly.

Question 40

Salary - Advantages

Answer 40

- people paid by salary often have more flexibility and can usually leave work occasionally if needed for medical appointments or family obligations

Question 41

Salary - Disadvantages

Answer 41

- don’t generally get paid more for overtime work.

Question 42

Earned Incomes

Answer 42

wages, salaries, tips

Question 43

Unearned Incomes

Answer 43

birthday/gifted money, inheritance, financial prize won

Question 44

May affect level of income

Answer 44

your skill, your education, economic trends