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  Linked activities: You make the decision (AC v9.0) You make the decision (AC v8.4) Making government decisions

Scenario The government has been advised by the Minister for Health that there are not enough hospitals, cancer treatment centres and practising health consultants in regional areas to cope with number of patients currently seeking medical help for allergies, flu and cancer. They are advised that they need to spend another $5 million on these health services.   The government has 4 options: Borrow the money Sell government-owned assets…

Asset classes You can choose how to invest your money. Different asset classes include: Cash (for example, a savings account) Fixed interest such as fixed term deposits and government bonds Property Shares Alternative investments such as cryptocurrency, hedge funds Alternatives are not suitable for every investor. They are most attractive and more suitable for more sophisticated and higher-net-worth investors. Adapted from…

Investment returns Figure 1: Percentage return by asset class – 2014-2023 The following tables represent the returns on an investment of $100,000 over different periods of time. Table 1: One-year investment Date of investment Gain or Loss (actual return on $100,000) Year beginning and ending Cash Bonds Property Shares 2014 $3,600 $4,308 $6,700 $5,310 2015 $2,650 $2,407…

Refer to Investment returns – Data sheet. Part 1: Analysing investment returns Look at figure 1. It shows the percentage returns of different asset classes for the 10-year period between 2014-2023. It does not include returns of alternative assets, as these are more appropriate for experienced and sophisticated investors. What does the graph tell you about the volatility of each asset class? Volatility is a tendency to change quickly and…

What is the difference between saving and investing? Have you ever saved up to buy something? Maybe you are putting money aside now to buy something that is important to you. Money can also be saved for a rainy day, or for unexpected expenses or events. Putting money aside into a savings account offers security or a sense of comfort regarding the future. If you save your money in a bank, you begin with a deposit and contribute regular amounts…

  Linked activity: Saving versus investing

Refer to Saving, investing and super – Explainer. In your groups, complete the following tables. Attributes Saving Investing Definition How does it work? Purpose   Investment attributes…