Finance Unit TEST 2017.pptx

dozipuhu's version from 2017-05-16 22:15


Question Answer
The class of banks that have Canadian ownership are:Schedule I banks
Name one Schedule 1 bank in Canada.RBC, CIBC, BMO, Scotiabank, TD National Bank, Laurentian Bank
What is the most important function of the Bank of Canada?To regulate money supply
How can the Bank of Canada regulate money supply?They can set the bank rate (also known as the prime lending rate) to influence interest rates to control spending.
True or False? A transaction account is used to save for the future.False - used by people to pay every day needs – i.e. pay household bills
Disposable Income equals Income (Personal Income) minus _?Deductions (CPP, EI, Income Tax)
The financial service which provides instant cash because of a “pre-arranged loan is:line of credit
Which type of savings plan has a fixed term and fixed rate of interest? It can be redeemable or non-redeemable.Guaranteed Investment Certificate (GIC)
The federal government introduced the ________ to encourage us to save for our retirement.RRSP (registered retirement savings plan)
What is discretionary income and how is it calculated?money left over after all expenses (necessary expenditures) are paid = Disposable Income minus expenses (expenditures)
What is “collateral”?Something of value offered as security for a loan, which the lender can take and sell if the loan is not repaid.
____________ is interest calculated on the principal plus any interest earnedCompound interest
The process of organizing and controlling limited income to satisfy needs and wants is called __________.budgeting
You borrow $10 000 at 6% interest for 5 years. At the end of 5 years you will have repaid $13 000. a) What is the principal amount? b) What is the interest amount?a) principal is $10 000 b) interest $3 000
You take out a loan from your bank to purchase a car. In this situation, who is the creditor and who is the debtor?You are the debtor and your bank is the creditor.
How does inflation affect purchasing power?As inflation increases prices, the amount of goods & services that money can buy decreases, which means the purchasing power of money is lower.
Identify the 3Cs of credit.character capacity capital
A person’s willingness to repay a debt is the 3C called capital. True or False?False - character
When stocks (shares) are traded on the stock exchange the _____ (an abbreviation) is used to uniquely identify the stocks.Ticker symbol