Question 1

To get the better rate on an emergency fund investment you should invest in a

Accepted Answer

A)  five-year cashable GIC.
B)  one-year non-cashable GIC.
C)  money market fund.
D)  one-year Canada Premium Bond.E) A) and C)
F) B) and D)

Question 2

Use of Financial Calculator TI BA II Plus required. The CIBC offers a GIC at 8 percent compounded annually and TD Bank offers the same rate but it is compounded semi-annually. What will be the return in five years on each bank's GIC for a $1000 investment?

Accepted Answer

A)  The CIBC GIC will earn $26.32 more in interest than the TD Bank GIC.
B)  The CIBC GIC will earn $469.33 and the TD Bank GIC will earn $496.28.
C)  The CIBC GIC will earn $469.33 and the TD Bank GIC will earn $480.24.
D)  The CIBC GIC will earn $400 and the TD Bank GIC will earn $440.E) A) and D)
F) A) and C)

Question 3

Deposits in commercial banks that are members of the CDIC are insured up to a maximum of $50 000 per account.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a Schedule II chartered bank?

Accepted Answer

A)  National Bank
B)  Citibank
C)  HSBC
D)  ScotiabankE) All of the above
F) A) and C)

Question 5

Non-depository institutions that provide insurance to protect individuals or firms against possible adverse events are called

Accepted Answer

A)  finance companies.
B)  securities firms.
C)  insurance companies.
D)  investment companies.E) B) and D)
F) None of the above

Question 6

Financial institutions loan funds at

Accepted Answer

A)  lower interest rates than depositors receive.
B)  higher interest rates than depositors receive.
C)  rates equal to what savers receive.
D)  cost plus 3 percent of the rate on GICs.E) A) and B)
F) All of the above

Question 7

Introductory high interest rates paid by financial institutions for new accounts are usually a good deal and you should therefore take advantage of them without question.

Accepted Answer

A) True 
 B)False

Question 8

In general, when an investment is more liquid, the return you will receive will be

Accepted Answer

A)  lower.
B)  higher.
C)  less predictable.
D)  Liquidity does not affect return.E) A) and C)
F) B) and D)

Question 9

Mutual fund dealers sell units of a prepackaged collection of investments with varying degrees of risk.

Accepted Answer

A) True 
 B)False

Question 10

List four types of financial institutions that you have made use of or plan to deal with in the future.

Accepted Answer

Finance companies, securities ...

Question 11

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

Accepted Answer

A)  Interest rates on similar GICs
B)  CDIC insurance amounts on accounts
C)  Interest rates charged on mortgages
D)  Service fees charged to different customersE) B) and C)
F) A) and D)

Question 12

Which of the following is a non-depository financial institution?

Accepted Answer

A)  Credit union
B)  Trust company
C)  Pawn shop
D)  Caisse populaireE) A) and D)
F) All of the above

Question 13

You are closing the purchase of a new home and your closing costs, including down payment, are $30 500. What form of payment would the lawyer require?

Accepted Answer

A)  Personal cheque
B)  Money order
C)  Certified cheque
D)  Traveller's chequeE) A) and D)
F) A) and C)

Question 14

Mutual fund investments such as a money market fund are guaranteed by the CDIC.

Accepted Answer

A) True 
 B)False

Question 15

Debit cards are more likely to be accepted by merchants than a certified cheque.

Accepted Answer

A) True 
 B)False

Question 16

Interest rates charged on credit cards can range from 8 percent to 24 percent.

Accepted Answer

A) True 
 B)False

Exam 5: Banking Services and Managing Your Money

List four types of financial institutions that you have made use of or plan to deal with in the future.

Correct Answer
verified
Finance companies, securities ...
View Answer

Non-depository institutions that provide insurance to protect individuals or firms against possible adverse events are called

Correct Answer
verified

Financial institutions loan funds at

Correct Answer
verified

Which of the following is a Schedule II chartered bank?

Correct Answer
verified

Mutual fund dealers sell units of a prepackaged collection of investments with varying degrees of risk.

Correct Answer
verified

Introductory high interest rates paid by financial institutions for new accounts are usually a good deal and you should therefore take advantage of them without question.

Correct Answer
verified

Deposits in commercial banks that are members of the CDIC are insured up to a maximum of $50 000 per account.

Correct Answer
verified

In general, when an investment is more liquid, the return you will receive will be

Correct Answer
verified

Mutual fund investments such as a money market fund are guaranteed by the CDIC.

Correct Answer
verified

Which of the following is a non-depository financial institution?

Correct Answer
verified

To get the better rate on an emergency fund investment you should invest in a

Correct Answer
verified

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

Correct Answer
verified

You are closing the purchase of a new home and your closing costs, including down payment, are $30 500. What form of payment would the lawyer require?

Correct Answer
verified

Use of Financial Calculator TI BA II Plus required. The CIBC offers a GIC at 8 percent compounded annually and TD Bank offers the same rate but it is compounded semi-annually. What will be the return in five years on each bank's GIC for a $1000 investment?

Correct Answer
verified

Debit cards are more likely to be accepted by merchants than a certified cheque.

Correct Answer
verified

Interest rates charged on credit cards can range from 8 percent to 24 percent.

Correct Answer
verified

Exam 5: Banking Services and Managing Your Money

List four types of financial institutions that you have made use of or plan to deal with in the future.

Correct AnswerverifiedFinance companies, securities ...View AnswerShow Answer

Non-depository institutions that provide insurance to protect individuals or firms against possible adverse events are called

Correct AnswerverifiedShow Answer

Financial institutions loan funds at

Correct AnswerverifiedShow Answer

Which of the following is a Schedule II chartered bank?

Correct AnswerverifiedShow Answer

Mutual fund dealers sell units of a prepackaged collection of investments with varying degrees of risk.

Correct AnswerverifiedShow Answer

Introductory high interest rates paid by financial institutions for new accounts are usually a good deal and you should therefore take advantage of them without question.

Correct AnswerverifiedShow Answer

Deposits in commercial banks that are members of the CDIC are insured up to a maximum of $50 000 per account.

Correct AnswerverifiedShow Answer

In general, when an investment is more liquid, the return you will receive will be

Correct AnswerverifiedShow Answer

Mutual fund investments such as a money market fund are guaranteed by the CDIC.

Correct AnswerverifiedShow Answer

Which of the following is a non-depository financial institution?

Correct AnswerverifiedShow Answer

To get the better rate on an emergency fund investment you should invest in a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You are closing the purchase of a new home and your closing costs, including down payment, are $30 500. What form of payment would the lawyer require?

Correct AnswerverifiedShow Answer

Use of Financial Calculator TI BA II Plus required. The CIBC offers a GIC at 8 percent compounded annually and TD Bank offers the same rate but it is compounded semi-annually. What will be the return in five years on each bank's GIC for a $1000 investment?

Correct AnswerverifiedShow Answer

Debit cards are more likely to be accepted by merchants than a certified cheque.

Correct AnswerverifiedShow Answer

Interest rates charged on credit cards can range from 8 percent to 24 percent.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Finance companies, securities ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified