Savings and Accounts
What is the account used for education savings called?
RESP
What is the difference between stocks and shares?
Nothing
Who is the creditor?
The person or institution lending money (bank, credit unions)
What is the difference between gross and net pay?
Gross pay is before taxes and deductions. Net is what hits your account
What is considered an "excellent" credit rating?
750+
What are the three tax free/advantaged accounts available to Canadians 18+?
TFSA, RESP, FHSA
A prolonged period of time where the stock market loses money is called what?
A Bear Market
How do lenders make money by offering credit?
Potential to make money through high interest fee charges
What are the timeframes for; short term goals, and long term goals?
Short Term: up to 12 months
Long Term: 1-5 years
What is the ability to turn assets into cash quickly?
Liquidity
Rank these assets in order of least liquid to most liquid; cash, collectibles, government bonds, stocks
collectibles, stocks, bonds, cash
DRIP, is used to represent what activity in investing?
Dividend Reinvestment Plan
What are the 3 C's of Credit
Capital/Collateral, Capacity, Character
Expenses that change from month to month are called?
Variable Expenses
A regular method of putting money aside to reach a financial goal is called;
A savings plan
In a High Yield Savings Account, what is a good interest rate?
2% (or around 2%)
Over time, what type of interest occurs during stock investing?
Compound Interest
The value given up in order to purchase something, or partake in an activity is referred to as;
Opportunity Cost
What are the 3 deductions on every Canadian's pay stub (over 18)
Federal Tax, CPP, EI
What should you invest in if you are looking for guaranteed returns over a short period of time (1 year)
GIC or High Yield Savings Account
Solve the Compound Interest Equation (round to 2 decimals)
P = 5000, r = 8%, n = 2x per year, t = 6 years
10072.68
Rank the 4 type of investments from the lowest to highest risk profiles
GIC, Bonds, Mutual Funds, Stocks
What is the total cost of a product worth 8,000, with 3,000 down and 150/month payments for 60 months
12,000
What does discretionary income represent? How is this income calculated?
Total income leftover after paying all necessary bills and expenses
Calculate interest with the below information; P = 4000, r = 6%, n = 8 years
1920