Q 1. Financial institutions loan funds at Select one: a. rates equal to what savers receive. b. cost plus 3 percent of the rate on
Q 1. Financial institutions loan funds at
Select one:
a. rates equal to what savers receive.
b. cost plus 3 percent of the rate on GICs.
c. higher interest rates than depositors receive.
d. lower interest rates than depositors receive.
Question 2
Which of the following will not vary at a chartered bank?
Select one:
a. CDIC insurance amounts on accounts
b. Service fees charged to different customers
c. Interest rates on GICs
d. Interest rates charged on mortgages
Question 3
Wanda Clark expects interest rates to decline in the next few months. Which of the following options would most likely give her the best return?
Select one:
a. A high interest savings account.
b. A two-year uncashable GIC
c. A money market account.
d. A six-month guaranteed investment certificate
Question 4
Your chartered bank is offering a one-year GIC with an interest rate of two percent, and a one-year cashable GIC for one and a half percent. Savings bonds are paying one percent. You have $10,000 to invest of which you feel $5,000 is ample for emergency fund purposes. How should you invest your funds given the options above?
Select one:
a. $10,000 in the one-year GIC
b. $5,000 in the one-year GIC and $5,000 in the one-year cashable GIC
c. $5,000 in the one-year GIC and $5,000 in savings bonds.
d. $10,000 in the one-year cashable GIC
Question 5
Of the following statements, which is a disadvantage of using credit?
Select one:
a. Using credit will harm your credit score.
b. Missing payments can damage your credit score.
c. Interest payments increase cash flow.
d. It can enable you to make convenient purchases.
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