Year 13 Jan Monthly test

What are the advantages of saving money in a bank account?

• Limited security, no growth, and difficult to withdraw funds

• No interest earnings, high fees, and risk of loss

• High risk, low returns, and limited access to funds

• Safety, interest earnings, and easy access to funds

Explain one disadvantage of investing in stocks.

• Market volatility

• Stable and predictable value

• Guaranteed high returns

• Low liquidity

Do you think it is morally right to take a loan for luxury items? Why or why not?

• No

• Yes, because everyone deserves to treat themselves

• Yes, because it's important to keep up with appearances

• Yes, because it's a way to show off wealth

What ethical considerations should be taken into account when investing in companies?

• Profitability and market share

• Company's political affiliations and lobbying efforts

• ESG practices and impact on society and the environment

• Employee satisfaction and work-life balance

How does the financial system contribute to the regulation of the economy?

• By increasing unemployment and reducing consumer spending

• By creating barriers to entry for new businesses

• By causing inflation and devaluing the currency

• By providing mechanisms for monetary policy implementation, facilitating efficient allocation of resources, and ensuring stability in the financial markets.

What are the main regulations that financial institutions must adhere to?

• Anti-money laundering (AML), know your customer (KYC), and consumer protection laws

• Health and safety regulations, building codes, and zoning laws

• Tax laws, immigration laws, and intellectual property laws

• Traffic laws, environmental regulations, and labor laws

What are the dangers of investing in high-risk stocks?

• Potential loss of investment, volatility, and uncertainty in returns

• Guaranteed high returns

• Stable and predictable income

• Low risk of losing money

Explain one potential danger of keeping all your savings in cash at home.

• Risk of winning the lottery and losing it all

• Increased risk of fire damage

• Potential danger of the cash losing its value

• Risk of theft or loss

How can saving money in a retirement account benefit individuals in the long term?

• By keeping all their savings in a regular checking account

• By not saving any money at all

• By benefiting from compound interest and tax advantages, leading to long-term growth of their savings.

• By spending all their money on luxury items

Discuss the moral implications of borrowing money from friends or family.

• It will not have any impact on relationships

• It may strain relationships and create feelings of obligation or resentment.

• It will strengthen the bond between family and friends

• It is a good way to test the loyalty of friends and family