The Direktbank AG is lowering its interest rate by 0.50 % effective

The Direktbank AG is
lowering its interest rate
by 0.50 % effective
immediately.
Go back two spaces!
The Direktbank AG is
raising its interest rate by
0.50 % next Monday.
Advance two spaces!
Your driving school has
increased its fee for
lessons by 5 Euros due
to rising fuel prices.
Go back three spaces!
The driving school in your
neighbourhood has
switched to fuel-efficient
cars. The fee for lessons
has gone down by
4 Euros.
Advance two spaces!
Your bank is offering to
increase the interest paid
on deposits of up to 5,000
Euros by 1 % for students.
Advance three spaces!
Your mutual fund is doing
well. Last year it had a
return of 15 %.
Advance three spaces!
Your mutual fund lost 5 %.
Go back three spaces!
The shares you recently
bought have gone up by
30 % based on positive
company news.
Advance four spaces!
Stock market crash!
Stock prices are falling
worldwide.
Go back four spaces!
Winter is coming, and
consumption of electricity
is rising. Stocks for
regional electric suppliers
are doing well. Luckily, you
bought in earlier.
Advance two spaces!
Your grandmother has
deposited 500 Euros in your
savings account.
Advance two spaces!
The inflation rate is on the
rise due to increases in
commodity prices. Your
bank will not be raising
interest rates for checking
accounts.
Go back one space!
The largest German
corporations have
announced that they will
be raising their dividends
for the current year. Your
mutual fund is on the rise.
Advance two spaces!
Your fixed deposit account
of 2,000 Euros will be paid
out next week.
Advance two spaces!
You have lost your
passbook! Your bank
charges a fee of 15 Euros
to replace it.
Go back two spaces!
Your laptop died
unexpectedly. To buy a
new one, you must
transfer 700 Euros from
your savings account to
your checking account.
Go back three spaces!
What organisation calculates
the inflation rate?
______________________
Federal Statistical Office
of Germany.
How many goods and
services are in the basket
of commodities?
______________________
Approximately 700 goods
and services.
Crude oil prices are falling.
How does this affect the
inflation rate, if the
remaining goods and services
show no change in price?
______________________
The inflation rate decreases.
Can the inflation rate be
negative?
______________________
Yes. When prices fall
compared to the same month
of the previous year,
it is referred to as deflation.
Is the following statement true?
When the inflation rate is
higher than the return on
investment, you can buy
more goods and services.
______________________
No, you cannot buy as many
goods and services
in this situation.
The opposite of inflation is…?
______________________
Deflation.
How high is the real
interest rate if the inflation
rate is 1.5 % and the
interest rate on capital
investment is 2.5 %?
______________________
The real interest rate is 1 %
(investment rate – inflation rate).
Is it true that the interest
rate increases as the
duration of the fixed
deposit increases?
______________________
Yes, that’s correct.
Is it true that you cannot
access your money while
it is in a fixed deposit account?
______________________
Yes, that’s correct.
Is it true that interest on
a fixed deposit account is
paid at the end of the term?
______________________
No, the interest is paid annually.
Can a bank reduce the
interest rate on a five-year
fixed deposit account after
the first two years?
______________________
No, the interest rate remains
the same throughout.
Are shares just as risky an
investment as a fixed
deposit account?
______________________
No, shares are much riskier.
Does one receive interest
or dividends on fixed
deposit accounts?
______________________
Interest.
Can you lose all your money
in a fixed deposit account?
______________________
No, banks take various
measures to safeguard
fixed deposit accounts.
Additionally, fixed deposits
are guaranteed by
the government.
Can one overdraw a
savings account?
______________________
No, one can only withdraw
as much money as there
is in the account.
Can one use a savings
account to pay regular bills?
______________________
No, a savings account is
not intended for payments.
Is the interest rate higher
on a money market account
or on a current account?
______________________
The interest rate is higher
on a money market account.
Can you pay for CDs or
DVDs at an electronics store
with a savings account?
______________________
No, you can only deposit
or withdraw money from
your account.
Does a savings account
have a fixed period?
______________________
No.
Why do direct banks
usually pay higher interest
rates on money market
accounts than retail banks?
______________________
Direct banks do not maintain
expensive offices and thus
have a cost advantage.
You have 1,300 Euros in your
money market account.
Can you withdraw 1,500 Euros?
______________________
No, you can only withdraw as
much money as there is in
your account.
Is it true that you can access
the full amount in your money
market account at any time?
______________________
Yes, that’s correct.
How are fixed deposit accounts,
savings accounts and money
market accounts protected?
______________________
Banks take various
measures to safeguard your
funds. Additionally, bank
deposits are guaranteed
by the government.
Some direct banks credit
the interest on your money
market account monthly.
Is this better for you?
______________________
Yes, the interest credited is
added to the principal; i.e.,
the interest continues to
compound.
Shares of the biggest
German corporations are
considered highly liquid. Why?
______________________
The shares can be bought and
sold at any time without
any difficulties.
What is the name for the
annual return a
corporation pays out?
______________________
Dividend.
Are the following market
conditions positive or negative?
Low interest rates.
Strong or reasonable
levels of economic growth.
______________________
Positive.
What is the term for the
graphic representation of
changes in stock price?
______________________
Charts.
Deutsche Telekom pays
out a high dividend every year.
What would happen if the
company were not to pay a
dividend one year due to
negative economic conditions?
______________________
Its share price would fall.
Which company’s share price
gained more over the years 2001
to 2010: Nokia or Apple?
______________________
Apple.
Is it true that you can never
lose your entire capital when
investing in shares?
______________________
No. In the worst-case scenario,
you could lose everything.
Can you access the capital
invested in shares at any time?
______________________
Yes, shares can be bought
or sold anytime on
the stock exchange.
The fund manager of the
LBBW mutual fund in Germany
wants to buy shares in Nokia.
Can he do so?
______________________
No, the fund manager
may only buy German shares.
Why are mutual funds less risky
than a single stock?
______________________
A mutual fund covers several
different stocks; thus, even if
a single stock performs badly,
the other stocks in the fund
provide a buffering effect.
The fund manager
Thomas Michal is confident
about the prospects for a
certain company, and would
like to invest at least 50 % of
the fund’s capital in this company.
Is this possible?
______________________
No, it contradicts the basic
idea of a mutual fund, which
is to spread risk.
Can the fund manager of a
biotechnology fund buy
shares in the cellular
phone company Nokia?
______________________
No, he can only buy shares
in the biotechnology industry.
Can a mutual fund committed
to the principles of socially
responsible investment make
investments in the
defense sector?
______________________
No.
Can you sell your stake in a
mutual fund at any time?
______________________
Yes, you can sell your stake
at any time, either on the
stock exchange or via the
investment management
company.
What is another
word for availability?
______________________
Liquidity.
How is return on
investment calculated?
In Euros or as a percentage?
______________________
As a percentage.
Your mutual fund grew by 5 %
over the last six months.
What is the annual return?
______________________
The annual return is 10 %.
The opposite of a safe
investment is a … investment.
______________________
Risky.
Is it true that rising profits
at a corporation usually also
lead to an increase in its
stock price?
______________________
Yes.
Why does a company’s stock
price sometimes not go up
over the long term in spite
of a rise in profits?
______________________
Due to the influence of
negative market conditions
(rising interest rates,
policies unfriendly to
business, etc.).
When did Nokia’s share
price reach its highest
levels to date (March 2011)?
______________________
In 2000.
What is the annual yield of the
following shares?
Price on 02.01.2010: 50 Euros
Price on 02.01.2011: 54 Euros
______________________
Eight percent.
Which of the following capital
investments could lose money
(ignoring inflation)?
Savings account
Shares
Fixed deposit accounts
Mutual funds
______________________
Shares and mutual funds.
What is occasionally referred
to as the “magic triangle”
of capital investment?
______________________
The trade-off between safety,
liquidity and profitability.
Is the phrase the more
secure the investment,
the higher the return true?
______________________
False. The safer an investment,
the lower the return.
Name the reason for the
collapse of the U.S. real
estate market in 2008.
______________________
The reason was lax lending
standards, especially when it
came to making loans to
subprime borrowers.
What stock would perform
better in a hot summer:
shares in an ice-cream
manufacturer or in a raincoat
manufacturer?
______________________
The shares in the ice-cream
manufacturer.
How are interest periods
calculated for savings schemes
such as fixed deposits,
savings accounts or
money market accounts?
______________________
Interest is always
calculated annually.
What country is Nokia from?
______________________
Finland.
What country is Apple from?
______________________
USA (California).
What is the most important
German stock index called?
DAX® 30
Dow Jones
Nikkei
______________________
DAX® 30.