Question 1

The "prime" rate is ___________________________.

Accepted Answer

A) The lending rate banks charge their most creditworthy clients 
B) The yield on 91-day treasury bills 
C) The yield on 30-year government bonds 
D) The yield on 1-year government bonds 
E) The yield on corporate bonds 
A) The lending rate banks charge their most creditworthy clients 
B) The yield on 91-day treasury bills 
C) The yield on 30-year government bonds 
D) The yield on 1-year government bonds 
E) The yield on corporate bonds

Question 2

If you think interest rates will increase, you should consider investing your money in a longer-term GIC.

Accepted Answer

A) True 
 B)False

Question 3

A service designed for people who write only a few cheques each month is a(n) ____________ account.

Accepted Answer

A) EFT 
B) regular chequing 
C) share draft 
D) interest-bearing chequing 
E) activity 
A) EFT 
B) regular chequing 
C) share draft 
D) interest-bearing chequing 
E) activity

Question 4

Joan Zemke expects interest rates to decline over the next few months.To maximize her earnings she should use a(n)

Accepted Answer

A) five-year GIC. 
B) interest-bearing chequing account. 
C) regular savings account. 
D) six-month GIC. 
E) money market fund 
A) five-year GIC. 
B) interest-bearing chequing account. 
C) regular savings account. 
D) six-month GIC. 
E) money market fund

Question 5

To avoid high fees for loans, a person should not borrow from a

Accepted Answer

A) credit union. 
B) savings and loan association. 
C) pawnshop. 
D) commercial bank. 
E) mutual savings bank. 
A) credit union. 
B) savings and loan association. 
C) pawnshop. 
D) commercial bank. 
E) mutual savings bank.

Question 6

Which of the following savings plans is not covered by federal deposit insurance?

Accepted Answer

A) a passbook account 
B) a regular chequing account 
C) a money market account 
D) a money market fund 
E) a GIC 
A) a passbook account 
B) a regular chequing account 
C) a money market account 
D) a money market fund 
E) a GIC

Question 7

Which of the flowing is not a non-deposit institution?

Accepted Answer

A) Life insurance companies 
B) Mortgage companies 
C) Pawnshops 
D) Investment Companies 
E) Trust companies 
A) Life insurance companies 
B) Mortgage companies 
C) Pawnshops 
D) Investment Companies 
E) Trust companies

Question 8

In recent years, membership in credit unions has

Accepted Answer

A) become more difficult due to higher taxes. 
B) continued to increase. 
C) been limited to government employees. 
D) declined due to poor credit union management. 
E) stayed at about the same level. 
A) become more difficult due to higher taxes. 
B) continued to increase. 
C) been limited to government employees. 
D) declined due to poor credit union management. 
E) stayed at about the same level.

Question 9

Which of these is not a characteristic of the compound interest bond?

Accepted Answer

A) various purchase options 
B) denominations of $100 up to $10,000 
C) cashable at any time for their face value 
D) can be purchased by cash 
E) A, B, C and D are all characteristics of the compound interest bond. 
A) various purchase options 
B) denominations of $100 up to $10,000 
C) cashable at any time for their face value 
D) can be purchased by cash 
E) A, B, C and D are all characteristics of the compound interest bond.

Question 10

Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a chequing account reconciliation? Service charge $6, Outstanding cheques $260, Interest $3.00, Deposit in transit $65

Accepted Answer

A) $260 
B) $65 
C) $71 
D) $68 
E) $266 
A) $260 
B) $65 
C) $71 
D) $68 
E) $266

Question 11

What is the major reason why merchants accept Bitcoin?

Accepted Answer

A) Safer than cash 
B) Safer than credit cards 
C) Lower fees than credit cards 
D) Consumers prefer to pay in cryptocurrency 
E) They want to have off book activities 
A) Safer than cash 
B) Safer than credit cards 
C) Lower fees than credit cards 
D) Consumers prefer to pay in cryptocurrency 
E) They want to have off book activities

Question 12

The money market fund offered by investment companies is a highly liquid financial service.

Accepted Answer

A) True 
 B)False

Question 13

An advantage of Canada Savings Bonds is

Accepted Answer

A) interest earned is exempt from federal income taxes. 
B) interest earned is deferred for federal tax purposes. 
C) a guaranteed rate of return. 
D) they can be converted to other types of investments. 
E) they are sold twice a year. 
A) interest earned is exempt from federal income taxes. 
B) interest earned is deferred for federal tax purposes. 
C) a guaranteed rate of return. 
D) they can be converted to other types of investments. 
E) they are sold twice a year.

Question 14

The storage of funds for future use is the purpose of ____________ services.

Accepted Answer

A) trust 
B) borrowing 
C) credit card 
D) savings 
E) cash chequing 
A) trust 
B) borrowing 
C) credit card 
D) savings 
E) cash chequing

Question 15

What is a drawback of a regular savings account?

Accepted Answer

A) Low rate of return 
B) Minimum deposit 
C) Service charges 
D) High minimum balance required 
E) Not guaranteed 
A) Low rate of return 
B) Minimum deposit 
C) Service charges 
D) High minimum balance required 
E) Not guaranteed

Question 16

The more frequent the compounding, the less a person will earn on a savings account.

Accepted Answer

A) True 
 B)False

Question 17

If the annual rate is 10% and inflation is 4%, then the approximate real rate of return is:

Accepted Answer

A) 14.00% 
B) 4.00% 
C) 6.00% 
D) 6.80% 
E) 7.00% 
A) 14.00% 
B) 4.00% 
C) 6.00% 
D) 6.80% 
E) 7.00%

Question 18

Store credit cards usually charge a lower interest rate than a bank credit card.

Accepted Answer

A) True 
 B)False

Question 19

A $400 savings account that earns $15 interest in a year has a yield of ____________ percent.

Accepted Answer

A) 6 
B) 15 
C) 4.75 
D) 3.75 
E) 6.5 
A) 6 
B) 15 
C) 4.75 
D) 3.75 
E) 6.5

Question 20

When interest rates are falling, a person would be best served by

Accepted Answer

A) short term loans 
B) short-term savings instruments. 
C) same approach as if interest rates are rising. 
D) variable-rate loans. 
E) long term loans. 
A) short term loans 
B) short-term savings instruments. 
C) same approach as if interest rates are rising. 
D) variable-rate loans. 
E) long term loans.

The "prime" rate is ___________________________.

If you think interest rates will increase, you should consider investing your money in a longer-term GIC.

A service designed for people who write only a few cheques each month is a(n) ____________ account.

Joan Zemke expects interest rates to decline over the next few months.To maximize her earnings she should use a(n)

To avoid high fees for loans, a person should not borrow from a

Which of the following savings plans is not covered by federal deposit insurance?

Which of the flowing is not a non-deposit institution?

In recent years, membership in credit unions has

Which of these is not a characteristic of the compound interest bond?

Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a chequing account reconciliation? Service charge $6, Outstanding cheques $260, Interest $3.00, Deposit in transit $65

What is the major reason why merchants accept Bitcoin?

The money market fund offered by investment companies is a highly liquid financial service.

An advantage of Canada Savings Bonds is

The storage of funds for future use is the purpose of ____________ services.

What is a drawback of a regular savings account?

The more frequent the compounding, the less a person will earn on a savings account.

If the annual rate is 10% and inflation is 4%, then the approximate real rate of return is:

Store credit cards usually charge a lower interest rate than a bank credit card.

A $400 savings account that earns $15 interest in a year has a yield of ____________ percent.

When interest rates are falling, a person would be best served by

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 4: Banking Services of Financial Institutions

The "prime" rate is ___________________________.

If you think interest rates will increase, you should consider investing your money in a longer-term GIC.

A service designed for people who write only a few cheques each month is a(n) ____________ account.

Joan Zemke expects interest rates to decline over the next few months.To maximize her earnings she should use a(n)

To avoid high fees for loans, a person should not borrow from a

Which of the following savings plans is not covered by federal deposit insurance?

Which of the flowing is not a non-deposit institution?

In recent years, membership in credit unions has

Which of these is not a characteristic of the compound interest bond?

Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a chequing account reconciliation? Service charge $6, Outstanding cheques $260, Interest $3.00, Deposit in transit $65

What is the major reason why merchants accept Bitcoin?

The money market fund offered by investment companies is a highly liquid financial service.

An advantage of Canada Savings Bonds is

The storage of funds for future use is the purpose of ____________ services.

What is a drawback of a regular savings account?

The more frequent the compounding, the less a person will earn on a savings account.

If the annual rate is 10% and inflation is 4%, then the approximate real rate of return is:

Store credit cards usually charge a lower interest rate than a bank credit card.

A $400 savings account that earns $15 interest in a year has a yield of ____________ percent.

When interest rates are falling, a person would be best served by

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters