Section 2 Part 1

Question 1

taxes

Answer 1

A tax is a compulsory financial charge by a governmental organization to fund government spending and various public expenditures

Question 2

sharemarket

Answer 2

Share market is the place where all the financial securities are bought or sold by the investors. By buying the share, you’re making an investment within the company.

Question 3

currency

Answer 3

Currency is a medium of exchange for goods and services.

Question 4

different types of financial institutions

Answer 4

bank and credit union

Question 5

bank

Answer 5

A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans.

Question 6

credit union

Answer 6

A credit union is a non for profit financial institution. It is member owned and it is is controlled by its members

Question 7

barter

Answer 7

Is an act of trading goods or services between two or more parties without the use of money or a monetary medium. Oldest form of commerce.

Question 8

savings

Answer 8

savings is a individuals money set aside for specific use within the future.

Question 9

investment

Answer 9

is an item/asset acquired with the goal of generating income by increasing in value.

Question 10

income

Answer 10

Is the money received for work on a regular basis or through investments. For example, people with a 9 to 5 job at a business earns x amount for y hours.

Question 11

expenses

Answer 11

Expenditure is an outflow of money to another person or group as payment for an item, service, or other category of costs. For a tenant, rent is an expense. For students or parents, school fees is an expense.

Question 12

deposit

Answer 12

Is a sum of money paid into a bank account or a first instalment on a purchase.

Question 13

loan

Answer 13

Is an amount of money borrowed from a bank that is paid back with interest. This loan can be used to pay off debt or to purchase a good that is very expense.

Question 14

ATM

Answer 14

Is a machine that takes money out of your bank account when you insert your card into the machine. These can be found outside of malls, shopping centres or banks.

Question 15

EFTPOS

Answer 15

Stands for Electronic Funds Transfer at Point of Sale. These are debit or credit payments made for the purchase of a good or service.

Question 16

term deposit

Answer 16

Is a fixed-term investment that includes the deposit of money into an account at a financial institution. This deposit is a consistent payment. These are usually short-term deposits with higher interest rates.

Question 17

wages

Answer 17

Are a fixed regular payment earned for work or services. These payments are typically paid on a weekly or daily basis.