The Sharemarket, Global Economics and Business

Question 1

Based on the graph of BHP shares, when would have been the best day in 2018 to buy BHP shares?

Answer 1

January 1

Question 2

Is this BHP chart a good guide of whether the future price will go up or down?

Answer 2

No

Question 3

The simple answer for a rise in the price of a share is that there are

Answer 3

more buyers than sellers

Question 4

The primary reason companies list on the share market is so they can

Answer 4

raise cash

Question 5

Which of the following taxes is calculated as a percentage of the estimated value of a landholding?

Answer 5

Council rates

Question 6

For which country is it said, “when it sneezes, Australia catches a cold”?

Answer 6

USA

Question 7

Companies on the sharemarket are called publicly listed company because the company names were originally listed on large boards.

Answer 7

True

Question 8

Select which best describes goods or services sold overseas

Answer 8

export

Question 9

Which of the following taxes is a flat 10% tax?

Answer 9

Goods and services tax

Question 10

Which of the following taxes is not paid by someone earning less than $18,200 per year?

Answer 10

Income tax

Question 11

What country is Australia’s major trading partner?

Answer 11

China

Question 12

Australia has the ASX200; which country has the FTSE500?

Answer 12

Great Britain

Question 13

The bid price is the price a buyer is prepared to pay. The asking price is the price a seller is prepared to sell. A sale happens when

Answer 13

They are the same

Question 14

Which of the following taxes is imposed by the state government on the purchase of both homes and cars?

Answer 14

Stamp duty

Question 15

The government decided to spend 5 billion dollars on a new freeway. It had to postpone plans to increase spending on education. This is an example of:

Answer 15

opportunity cost

Question 16

If you bought a million BHP shares on December 8, 2017, and sold them on January 14, 2018, approximately how much would you make (before taxes and fees)

Answer 16

$4.5 billion

Question 17

Shares in publicly listed companies are also known as: (check 3)

Answer 17

• Equities
• Stocks
• Securities

Question 18

Which country has the most migration with Australia?

Answer 18

New Zealand

Question 19

The demand for your business product exceeds your ability to produce it. A reasonable course of action would be to increase

Answer 19

price

Question 20

The Australian sharemarket is open for trading between 10 am and 4 pm in which Australian capital city?

Answer 20

Sydney

Question 21

Haiwei began mass-producing mobile phones. This forced Apple and Samsung to reduce price of their phones. This is an example of;

Answer 21

supply and demand

Question 22

Approximately how many companies are listed on the Australian Securities Exchange?

Answer 22

2,000

Question 23

Which of the following taxes applies only to the sale of property other than the family home?

Answer 23

Land tax

Question 24

When a company sells shares for the first time it is called which three of the following?

Answer 24

• Initial Public Offering
• Float
• Listing

Question 25

Once a company has listed on the ASX it has to obey certain rules. One of these is to immediately tell the public

Answer 25

anything that would influence decisions to buy or sell shares in that company

Question 26

The website of the Australian stock exchange is...

Answer 26

WWW.asx200.com.au

Question 27

To increase sales of your business product, you could try to

Answer 27

- Reduce the price - Advertise - Improve quality

Question 28

Select which best describes a good or service purchased from overseas

Answer 28

import

Question 29

What was the highest number of BHP shares bought on any one day?

Answer 29

6 million

Question 30

An investor had a million dollars in a bank earning 2% p.a capital guaranteed. he was unhappy with his rate of return so took his money out of the bank and invested in shares. this is an example of:

Answer 30

risk and reward

Question 31

Why would an Australian farmer like a low dollar

Answer 31

His exports, such as wheat and meat, will be cheaper overseas and therefore more competitive

Question 32

Which of the following companies would not be likely to be listed on the sharemarket

Answer 32

Diagonal road Chickens

Question 33

What was the highest price of BHP shares in the period between 27 September 2017 and 27 March 2018?

Answer 33

$32.00

Question 34

What best describes the cost of a loan?

Answer 34

interest

Question 35

What best describes a tax or duty on imports to make locally made goods more competitive.

Answer 35

tariff

Question 36

The price of each of the companies is determined by

Answer 36

the forces of demand and supply

Question 37

ASIC is the body that monitors the sharemarket. ASIC stands for

Answer 37

Australian securities and investments corporation

Question 38

What best describes a share in the earnings of a public company

Answer 38

dividend

Question 39

What best describes when employees contribute part of their salary or wage to fund their retirement.

Answer 39

superannuation