YEAR 9 HUMANITIES REVISION SHEET - MONEY MATTERS
YEAR 9 HUMANITIES
REVISION SHEET FOR TEST ON MONEY MATTERS
COVERING SECTIONS 8.1,8.2,8.3 AND 8.4
CLOSED BOOK TEST
Format of Test Short Answer Questions.
Define the following terms-:
Money
Coins and banknotes that are used to buy things, or an amount of these that a person has. It is also a store of value and a measure of wealth.
Fiat money
Fiat money is a term used to describe money declared by a government to be legal tender. However, this money is standardised from one country to another via exchange rates to ease foreign trade.
Savings
The money you keep, especially in a bank or an organization.
Cryptocurrency
A digital currency produced by a public network, rather than any government, in which uses cryptography to make sure payments are paid and received safely.
Credit
Credit is money you borrow from a financial institution, such as a bank or credit union, to spend the way you want. You need to repay this debt to the credit provider, usually with extra costs on top of the amount you borrowed. These extra costs can be in the form of annual fees, but most institutions also charge very high rates of interest for the convenience of using the bank’s money at call (at call means available immediately).
Scam
A fraudulent scheme designed to deceive individuals or organizations, often for financial gain, causing harm or loss to victims through deception or misrepresentation.
Hard currency
A stable, widely accepted currency that holds its value and is used in international trade and finance, often associated with economically strong nations.
Risk
The possibility of something bad happening.
ADI
An ADI is an authorised deposit-taking institution. ADIs are financial institutions licensed by APRA – Australian Prudential Regulatory Authority.
Shareholder
A person who own portions of a company and therefore is entitled to make decisions regarding the company, and is also entitled to profits based on how much portions of the company they own.
Saving
The practice of preserving money for future needs or goals, fostering financial stability and security.
Investing
Investing is buying an asset with the expectation that your investment will make money for you. The goal of investing is to make money, so it is natural to pursue investments that offer the greatest returns. Often the return can be via capital improvement or via an income stream from the investment.
Dividend
Part of the profit which is paid to the people who own shares in it.
Capital Improvement
An addition/change made to land, equipment/building that increases its value or the profit it produces.
Return on Investment
A measure of an investment's profitability, calculated by dividing gains or net profits by the initial capital or cost of investment.
ASX
The Australian Securities Exchange, a major securities market in Australia, facilitating trading of shares, bonds, derivatives, and other financial instruments.
Identify the world’s oldest currency.
British pound.
What are some common terms for money?
Interest, loan, deposit, withdrawal.
What are the advantages and disadvantages of using credit cards?
Advantages of credit cards include convenience, rewards programs, and ease of online transactions.
Disadvantages encompass high-interest rates, potential debt accumulation, and fees.
What is good debt? Provide examples
Debt incurred for investments with the potential to increase wealth, such as mortgages, student loans, and business loans.
What is bad debt? Provide examples
High-interest consumer debt that does not generate wealth or appreciating assets, often associated with credit card debt and payday loans. Examples also include discretionary items which are mostly “wants” such as a new car, living lavishly, etc.
What is Scamwatch?
An Australian government agency dedicated to combating scams, providing information, and raising awareness about fraudulent activities.
What strategies can be used by individuals to reduce the exposure to risk?
Methods employed by individuals to mitigate exposure to potential financial losses, including diversification, insurance, and thorough research.
What is the role of financial institutions?(banks, credit unions and building societies)
rganizations, including banks, credit unions, and building societies, providing various financial services like banking, lending, and investing.
What is the difference between a bank and credit union?
Banks and credit unions differ in ownership, structure, and services, with banks being for-profit corporations and credit unions being member-owned cooperatives.
Name the big four banks in Australia.
The four largest banks in Australia, including Commonwealth Bank, Westpac, ANZ (Australia and New Zealand Banking Group Limited), and National Australia Bank (NAB).
Who is responsible for producing notes and coins in Australia? State the organization.
The Royal Australian Mint, responsible for producing notes and coins for circulation in Australia.
List three types of Investments.
Common investment categories include stocks (equities), real estate (property), and bonds (fixed-income securities).
What is the purpose of buying shares in a company?
Buying shares in a company grants ownership and the potential to receive dividends or profit from share price appreciation.
YEAR 9 HUMANITIES
REVISION SHEET FOR TEST ON MONEY MATTERS
COVERING SECTIONS 8.1,8.2,8.3 AND 8.4
CLOSED BOOK TEST
Format of Test Short Answer Questions.
Define the following terms-:
Money
Coins and banknotes that are used to buy things, or an amount of these that a person has. It is also a store of value and a measure of wealth.
Fiat money
Fiat money is a term used to describe money declared by a government to be legal tender. However, this money is standardised from one country to another via exchange rates to ease foreign trade.
Savings
The money you keep, especially in a bank or an organization.
Cryptocurrency
A digital currency produced by a public network, rather than any government, in which uses cryptography to make sure payments are paid and received safely.
Credit
Credit is money you borrow from a financial institution, such as a bank or credit union, to spend the way you want. You need to repay this debt to the credit provider, usually with extra costs on top of the amount you borrowed. These extra costs can be in the form of annual fees, but most institutions also charge very high rates of interest for the convenience of using the bank’s money at call (at call means available immediately).
Scam
A fraudulent scheme designed to deceive individuals or organizations, often for financial gain, causing harm or loss to victims through deception or misrepresentation.
Hard currency
A stable, widely accepted currency that holds its value and is used in international trade and finance, often associated with economically strong nations.
Risk
The possibility of something bad happening.
ADI
An ADI is an authorised deposit-taking institution. ADIs are financial institutions licensed by APRA – Australian Prudential Regulatory Authority.
Shareholder
A person who own portions of a company and therefore is entitled to make decisions regarding the company, and is also entitled to profits based on how much portions of the company they own.
Saving
The practice of preserving money for future needs or goals, fostering financial stability and security.
Investing
Investing is buying an asset with the expectation that your investment will make money for you. The goal of investing is to make money, so it is natural to pursue investments that offer the greatest returns. Often the return can be via capital improvement or via an income stream from the investment.
Dividend
Part of the profit which is paid to the people who own shares in it.
Capital Improvement
An addition/change made to land, equipment/building that increases its value or the profit it produces.
Return on Investment
A measure of an investment's profitability, calculated by dividing gains or net profits by the initial capital or cost of investment.
ASX
The Australian Securities Exchange, a major securities market in Australia, facilitating trading of shares, bonds, derivatives, and other financial instruments.
Identify the world’s oldest currency.
British pound.
What are some common terms for money?
Interest, loan, deposit, withdrawal.
What are the advantages and disadvantages of using credit cards?
Advantages of credit cards include convenience, rewards programs, and ease of online transactions.
Disadvantages encompass high-interest rates, potential debt accumulation, and fees.
What is good debt? Provide examples
Debt incurred for investments with the potential to increase wealth, such as mortgages, student loans, and business loans.
What is bad debt? Provide examples
High-interest consumer debt that does not generate wealth or appreciating assets, often associated with credit card debt and payday loans. Examples also include discretionary items which are mostly “wants” such as a new car, living lavishly, etc.
What is Scamwatch?
An Australian government agency dedicated to combating scams, providing information, and raising awareness about fraudulent activities.
What strategies can be used by individuals to reduce the exposure to risk?
Methods employed by individuals to mitigate exposure to potential financial losses, including diversification, insurance, and thorough research.
What is the role of financial institutions?(banks, credit unions and building societies)
rganizations, including banks, credit unions, and building societies, providing various financial services like banking, lending, and investing.
What is the difference between a bank and credit union?
Banks and credit unions differ in ownership, structure, and services, with banks being for-profit corporations and credit unions being member-owned cooperatives.
Name the big four banks in Australia.
The four largest banks in Australia, including Commonwealth Bank, Westpac, ANZ (Australia and New Zealand Banking Group Limited), and National Australia Bank (NAB).
Who is responsible for producing notes and coins in Australia? State the organization.
The Royal Australian Mint, responsible for producing notes and coins for circulation in Australia.
List three types of Investments.
Common investment categories include stocks (equities), real estate (property), and bonds (fixed-income securities).
What is the purpose of buying shares in a company?
Buying shares in a company grants ownership and the potential to receive dividends or profit from share price appreciation.
