| Question | Answer |
| asset | a physical item that is owned by an individual or company
|
broker | an individual or firm that acts as an jntermediary between a buyer and seller. usually charges a fee or commission
| bridging finance | a loan taken out to bridge the gap between providing funds to purchase a property and receiving funds from selling a property
| cash rate | the rate charged on the overnightloans between financial intermediaries
| compound interest | interest cakcukated on principal and accumulated interest. compounding is where the value of the interest increases exponentially
| consumer credit code | a law governing consumer lending in Australia
| conveyancing | legal process whereby ownership of a property is transferred from the seller to the purchaser
| credit report | a record of your credit applications and certain defaults which is held by the credit reporting agency
| debit card | a plastic card with an encided magnetic strip that enabkes access to your accounts and funds at ATMs and EFTPOS
| disposable income | amount of after tax income to divide between personal spending and saving
| duty of disclosure | duty to disclose all relevant information to an insurer which are known by the applicant to be relevant, or that a reasonable person in the circumstances woukd be relevant to the insurer
| EFTPOS | electronic funds at point of sale
| equity | difference between what yiu own and what you own
| face value | nominal dollar value of a security when issued
| financial services guide | a document required by law to be given to a retail client when they are provided a financial services by a holder of an AFSL
| fixed rate loan | loan where the interest rate is set for the duration of the term
| gearing | borrowing money to be used to buy an investment
| hedge | an investment made to reduce the risk of an adverse price movement of another investements
| inflation | the increase in the prices of goods and services in the economy
| insurance | provides financial protection against a future possible event
| intermediary | a third party who facilitates a transaction between two other parters
| lien | right of a lender or trader to retain assets or goods untik a debt or an account is repaid
| liquidity | ability to convert and asset into cash quickly without any price discount |
