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Financial Literacy 2 - Investing, Borrowing, and Security Flashcards | StudBud
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Financial Literacy 2 - Investing, Borrowing, and Security
Financial Literacy 2 - Investing, Borrowing, and Security
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1
What is considered an excellent credit score in Canada?
0-300
700-900
300-599
1000-2000
2
Which of these is true about bonds?
Bonds are higher risk than stocks
Bonds signify ownership in a company.
Bonds represent a loan to an issuer
Bonds offer fixed returns.
3
Mutual Funds are:
Alternative investments
Tax-free accounts
Individual investments in real estate
Pooled funds managed by professionals
4
Which of the following is a long-term investment?
Short-term Bond
High-interest Saving Account
Real Estate
ETFs
5
Which document is likely to contain sensitive information that could be used fraudulently?
Resume
Grocery Receipt
Passport
Job Application
6
Which factor most negatively impacts your credit score?
Applying for a new credit card
Paying off loans early
Having a mix of credit types
Late payments on credit cards
7
Which of the following is the safest way to store sensitive physical documents?
In your underwear drawer
On your Desk
In an encrypted folder
In a fireproof safe
8
When is it appropriate to share your Social Insurance Number (SIN)?
With Verified Employers
With Government Agencies
When buying things online
When signing up for any account
9
Which best describes a minimum payment on a credit card?
The recommended payment to clear your balance faster.
The amount required to avoid late fees.
The full amount of your statement balance.
A portion of the interest charged monthly.
10
What is Net Worth?
Your annual expenses subtracted from income.
Your total earnings for the year.
The interest on your savings.
The value of your assets minus liabilities.
11
What is the primary purpose of a credit score?
To determine how much tax you pay.
To indicate your ability to repay debts.
To provide a history of your earnings.
To show how much money you have saved
12
Which of the following describes a scam designed to trick individuals into sharing
personal information?
Encrypting
Phishing
Malware
Skimming
13
What does a Guaranteed Investment Certificate (GIC) provide?
A diversified portfolio
High returns with high risk
A fixed interest rate and low risk
Tax-free growth
14
Which of these is true about stocks
Stocks are designed for short-term goals
Stocks offer fixed returns.
Stocks signify ownership in a company.
Stocks represent a loan to an issuer
15
How can gambling affect an individual’s finances?
It guarantees a steady source of income.
It is a reliable method to build emergency savings.
It leads to predictable and sustainable financial growth.
It poses significant risks of financial loss and debt accumulation.
16
Why is diversification important in investing?
Reduces need for professional advice
Guarantees high returns
Increases risk for better returns
Spreads investments to reduce risk
17
What is the primary benefit of a TFSA?
Guaranteed returns
Tax-free growth on contributions and investments
Penalty-free deposits
High interest rates
18
Which of the following is an example of "bad debt"?
A small business loan for expansion.
A mortgage used to purchase a home.
Using your credit card for a very expensive trip.
A payday loan with high-interest rates.
19
Which loan type often has the highest interest rates?
Student Loans
Payday Loans
Auto Loans
Mortgage Loans
20
What is the primary reason young adults are encouraged to establish credit early?
To increase their spending power immediately.
To avoid paying rent or bills in cash.
To build a credit history for future loans
To ensure they always qualify for the lowest interest rates.
21
Which of these passwords is the STRONGEST?
!G@torADE281
Ch33seP!ZZ@
C00lDuDE99$@
92WHaTeVeR8321
22
Which payment method is considered the most secure for online shopping?
Debit Card
Cash
Credit Card
Wire Transfer
23
What should you avoid doing when creating a password?
Changing it regularly
Making it easy to remember for you
Using a mix of letters, numbers, and symbols
Using personal information like your middle name or birthdate
24
What does the term "APR" stand for in credit card agreements?
Adjustable Payment Rate
Average Percentage Rate
Annual Percentage Rate
Annual Payment Rate
25
What is the main purpose of investing?
Saving Without risk
Earning a return over time
Avoid taxes
Spending on luxuries
26
What is the main disadvantage of paying only the minimum payment on a credit card?
It prevents additional interest from accruing.
It has a big effect on your credit score
It reduces your borrowing limit significantly.
Interest accumulation
27
What is a common characteristic of phishing emails?
Spelling and Grammar Errors
No urgent language
Always sent by your bank
Use of generic greetings like “Dear Customer”
28
What is “Principal”?
The original sum of money borrowed in a loan.
Mr. Marciniw
The upfront total cost of an item paid in full.
The full amount paid over the course of a loan.
29
How can you verify that an online payment website is secure?
It has "https" in the URL
The site is well made
It has "http" in the URL
It loads quickly
30
Which is "Good Debt"?
Accumulating gambling debt.
Using a credit card to buy non-essential items.
Taking a payday loan to pay bills.
Borrowing for a student loan
31
Which of the following is NOT a way to improve your credit score?
Making payments on time
Keeping credit utilization below 30%
Avoiding frequent soft inquiries
Closing all old credit accounts
32
What is a key strategy to build a credit score?
Avoid using credit altogether.
Make timely payments on all debts.
Open multiple credit accounts at once.
Use only cash for all transactions.
