Revision - Money, Debt and Banking Flashcards
What is a Bank?
A bank is a financial institution that accepts deposits from the public and creates credit. Banks lend money to the public and charge them interest for it.
What are Transaction Accounts?
A transaction account is a deposit account held at a bank or other financial institution.
What is a Savings plan?
Investment in which individual contributes money on a regular basis in order to reach a financial goal on a short or long term basis.
What does a Financial Counsellor do?
Financial counsellors provide a free, confidential and independent service. Financial counsellors can help you organise your finances and do a budget.
What is a Transaction Fee?
A transaction fee charges the account holder for a transaction they conduct. (withdrawals, deposits or transfers.
What is Simple Interest?
Simple interest is interest calculated on the original contribution to a savings account.
What is Compound Interest?
Compound interest is interest earned on the current balance of money (e.g. savings account)
What are some examples of Income?
Wage, salary, interest received, dividends, inheritance and superannuation
What are some examples of Expenses?
Mobile phone bills, electricity bills, internet and water bills.
What is Debt?
Debtis when something, usually money, is owed by the borrower or debtor, to the lender or creditor.
What are some forms of Debt?
Mortgage, Credit card debt, Medical debt, Tax debt, Student loans, Loans (personal)
What are Savings Accounts?
Savings accounts allow you to deposit money, and receive (compound) interest.
What does PIN stand for?
Personal Identification Number
What does BSB stand for?
Bank State Branch
Credit Card
A credit card is a card which allows people to buy items without cash and pay back interest on it.
