What does going public mean?

First public selling of shares formerly privately held

Which of the following is not true about investing in government bonds?

It is a high risk/high return invest

Which of the following is not true about bonds from friendly societies and insurance companies?

this is a great short term investment

which of the following is not true about buying shares?

Stockbrokers trade shares on your behalf for free

Which of the following investments in a financial institutions will make the largest return?

fixed term investment for a period of 1-5 years

What determines a share's price?

The relationship between supply and demand

Which of the following is a disadvantage of buying real estate?

Overtime borrowings can become less of aproportion of a wage, capital gains not taxed if investor lives in the house

Which of the following is not true about unsecured notes?

It has a lower return than a debenture

A blue chip share is...

a company with a proven record of stable growth

What does the term liquidity measure?

How easily an asset is converted to cash

What is market volatility?

measures the degree to which prices change over time.

Which of the following does not describe an investment?

consumption spending where value will go down after purchase

Which of the following is not a right of a shareholder in a company?

determine the day to day decisions of running the compant

Which of the following does not describe a debenture?

It generally has a higher return than an unsecured note

Risk and return is an important concept in investment. The rule is...

The greater the risk the greater the potential return

Which of the following is not true about starting your own business?

You need little working capital

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10 Commerce Money

30 termsStudBud Administration327 plays

Investment questions

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Questions 30

Answers

1
Which term describes an increase in the value of an asset?
capital finance
capital gain
interest paid
fringe benefit
2
Which of the following is not an advantage of long term investing?
Shares tend to recover any losses over time
Long-term investing reduces expenses
stock market reflects growth & productivity of the economy
High liquidity
3
What does going public mean?
Using investment advice from a newspaper
A criminal charge of public indecency
First public selling of shares formerly privately held
Attending a government school not an independent school
4
Which of the following is not true about investing in government bonds?
The government guarantees the security of the loan
Government IOU for interest and money invested
It is a high risk/high return invest
They are sold through the Reserve Bank
5
Which of the following is not true about bonds from friendly societies and insurance companies?
The tax has been paid on the investment
the money is invested for 10 years
this is a great short term investment
Interest/bonuses are retained and compounded over that time
6
which of the following is not true about buying shares?
Shares can be traded on the Australian Stock Exchange
Stockbrokers trade shares on your behalf for free
a new company offers shares through a prospectus
a share indicates a part ownership of a company
7
Which of the following investments in a financial institutions will make the largest return?
fixed term investment withdrawn before the term is up
a cheque account
at call investment can be withdrawn with 24 hours notice
fixed term investment for a period of 1-5 years
8
What determines a share's price?
The relationship between supply and demand
The profit or loss of the company
The ASX
The CEO of the company
9
Which of the following is a disadvantage of buying real estate?
Overtime borrowings can become less of aproportion of a wage
capital gains not taxed if investor lives in the house
Real estate may not go up in value
capital gains tax paid when the investor sells the property
10
Which of the following items would not be considered an investment?
shares in an ASX listed company
A waterfront property
A prestige car
A house that you will rent out to tenants
11
Which of the following is not true about unsecured notes?
It is not secured by the company's assets
It is a loan to a finance company
It has a lower return than a debenture
It is a way of investing in a finance company
12
A blue chip share is...
A company where there is high risk in investing
A fast food company selling a rare root vegetable
a company with a proven record of stable growth
A share which offer guaranteed results
13
Which of the following is not a benefit of owning shares?
capital growth is achieved by rising share price
They are a low risk investment
income is obtained through dividend
dividend imputation scheme means shareholders pay tax once
14
What does the term liquidity measure?
Shares that are in companies that make liquids eg Coke
how good the advice of an intoxicated share broker is
The impact of capital gains tax
How easily an asset is converted to cash
15
What is market volatility?
A means of reducing tax
measures the degree to which prices change over time.
the trade of volatile substances
When you feel nauseated when you read your share price
16
Which of the following does not describe an investment?
It earns regular income from interest
It earns regular income from dividends
consumption spending where value will go down after purchase
It can lead to capital gain when sold
17
Which of the following is not a right of a shareholder in a company?
To vote at meetings
determine the day to day decisions of running the compant
To be paid a share of profits as a dividend
To make a capital gain on the purchase price of your shares
18
Which of the following is not true about investing in real estate?
It has high liquidity
returns can be made two ways
it has high costs
There are potential tax advantages
19
Which is not a reason an investor would prefer to use an equity or management trust?
the investment is in a range of companies
manager acts on investor's behalf using their expertise
there is a guaranteed return
staff select for likely high yields or capital growth
20
Superannuation is not...
a high liquidity investment
A form of compulsory saving for retirement
an investment option with taxation advantages
a way the government lessens the burden of care for elderly
21
A dividend is not...
one of two ways you making a return on shares
a tax free investment
based on the original or par value of the share
a share in company profits
22
Which of the following is incorrect when investing in gold?
Gold prices fall when supply increased
Its value is determined by supply relative to demand
It never decreases in value
global uncertainty may increase its value
23
The Superannuation Guarantee Levy means employers invest which percentage of an employees wage?
10%
5%
30%
20%
24
The performance of the top companies in Australia is measured by a stock market index named...
FTSE 100.
S&P 500
All Ordinaries Index
The Dow Jones
25
A document prepared for potential investors to give them information on a new company
prospect
prospectus
prosecution
prospective
26
Which of the following would cause a decrease in the price of shares?
negative world events
anticipation of a high profit
decreasing company debts
high performance of the company
27
Which of the following does not describe a debenture?
a debenture is a document acknowledges a debt
It is secured by the assets of the company
It generally has a higher return than an unsecured note
It is a way of investing in a finance company
28
A tax levied after sale on the increased value of an investment is called...
capital gains tax
fringe benefits tax
goods and services tax (GST)
income tax
29
Risk and return is an important concept in investment. The rule is...
all your investments should be as risky as possible
The greater the risk the greater the potential return
Good investors only make low risk investments
All investment involves risk so you should avoid it
30
Which of the following is not true about starting your own business?
You need little working capital
It often requires longer hours than being an employee
It gives satisfaction of reaping the rewards of your efforts
It is unlikely to make a large profit in the short term

10 Commerce Money Flashcards | StudBud