Question 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. lower interest rates than depositors receive.

d. higher interest rates than depositors receive.

Question 2

Which of the following will not vary at a chartered bank?

Select one:

a. Interest rates charged on mortgages

b. Interest rates on GICs

c. CDIC insurance amounts on accounts

d. Service fees charged to different customers

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 six-month guaranteed investment certificate

b. A two-year uncashable GIC

c. A money market account.

d. A high interest savings account.

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. Missing payments can damage your credit score.

b. Interest payments increase cash flow.

c. It can enable you to make convenient purchases.

d. Using credit will harm your credit score.