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17 Cards in this Set
- Front
- Back
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defintion of money |
a current medium of exchange in the form of coins and banknotes |
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functions of money |
store of value - money that will stay the same and never change and you can access it at anytime.
medium of exchange - used to help with sales, trading, bartering and goods between different people and must be accepted as a means of payment.
standard unit of account - used to value goods and services and any economic item |
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forms of money |
credit card, debit card, gold, cheques, coins and notes, |
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credit cards vs debit cards |
a credit card is used to allow you to buy goods and services on credit i.e. buy now pay later
a debit card allows us to pay for goods and services with our own money e.g. the money we receive from work and jobs are put onto that card so you pay no interest |
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advantages and disadvantages of a credit card |
advantages include 24/7 use, easier than carrying cash and safer than carrying cash
disadvantages include you can be put into a lot of debt, your account can be hacked and can attract very high interest rates |
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foreign currencies - how to calculate them |
aus to other country = aus dollar x exchage rate
other country to aus = other country dollar divided by exchange rate |
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who borrows money |
individuals for mortgages, businesses, uni loans, holidays, car repayments, phone repayments |
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who lends money |
family, banks and credit unions |
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types of loans |
home loans, car loans, business loans, personal loans |
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factors to consider when borrowing money |
interest rate, application fee, how much the bank will lend you, term of the loan, ongoing fees |
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principal vs interest repayments |
principal - when your money goes towards repaying back the original amount
interest - when your money goes towards repaying the interest on a loan which is calculated as a percentage of the principal loan |
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fixed vs variable rate loans |
fixed rate loan is when the interest rate stays the same in your term of the loan
variable rate loan is where the interest rate can drop or raise at any moment |
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types of scams |
phising scams, internet scams, credit card scams, identity theft, text messages scams, lottery scams, dating and romance scams |
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protecting yourself from scams |
never open suspicious links in emails, never give anyone any personal details, have a security software updated and on your computer and make sure that in the url there is a https in it to be safe |
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exchange rate |
means the value of one currency in comparison to another |
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PIN stands for |
PERSONAL IDENTIFICATION NUMBER |
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INTEREST FREE DAYS |
the number of days you go without paying any credit |
