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Investing Wisely Flashcards | StudBud

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Investing Wisely

12 terms·StudBud Administration·328 plays

A Commerce Quiz for Australian Students

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Questions 12

Answers

1
What word is associated with a managed fund?
consolidation
diversification
2
A return you might get on a property investment is
capital gain
capital
interest
dividends
3
A dividend is the return on
property
a term deposit
superannuation
shares
4
What does yield mean when talking about share investments?
The increase in a share's price over time.
The dividend's return compared to the cost of shares.
The price to earnings ratio.
The ratio of risk to return on the investment.
5
Property is a long term investment because:
it takes time to sell a property
you can get regular rental income from a property
you get taxed when you buy a property
you get capital gains from a property
6
Which of the following is the best short term investment?
Bonds
Term deposit
Shares
Superannuation
7
Managed funds are a good investment because it has:
more risk than shares but better returns on investment
management fees
a combination of investment options
less personal control over your investments
8
As risk goes up, so does return on an investment.
True
False
9
A disadvantage of shares is that you:
get a dividend
pay brokerage fees
can lose money if the economy changes
get capital gains
10
The return on money deposited in the bank is called
cash
profit
interest
debt
11
Compound interest means
your investment has more risk
your interest is at a variable rate
your interest is at a fixed rate
your interest earns more interest
12
Which investment has the highest risk?
bonds
managed fund
shares
term deposit