Which investments would best protect purchasing power in a sudden increase in inflation?

A house financed with a fixed-rate mortgage

In your savings account...

Earnings from savings account interest may not be taxed, Income tax may be charged if your income is high enough

Which of the following can hurt your credit rating/credit score?

Making late payments on loans and debts

Who requires the highest amount of life insurance if each person had the same take home pay?

A young single woman with two young children, A young single woman with no children

Which of the following will help lower the cost of a home?

Making a larger down payment at the time of purchase

What is a credit report?

A loan and bill payment history

In which circumstances would it be beneficial to borrow money?

When credit allows someone to get a much better paying job

Which group would have the biggest problem during longer periods of high inflation?

Older people living on fixed retirement income

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Financial Literacy

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A #Quiz to access prior knowledge of #Financial #Literacy

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Questions 13

Answers

1
Which investments would best protect purchasing power in a sudden increase in inflation?
A certificate of deposit at a bank
A house financed with a fixed-rate mortgage
A 25-year corporate bond
A 10-year bond issued by a corporation
2
In your savings account...
Earnings from savings account interest may not be taxed
You cannot earn interest until you pass your 18th birthday
Income tax may be charged if your income is high enough
Sales tax may be charged on the interest that you earn
3
Which of the following can hurt your credit rating/credit score?
Staying in one job too long
Living in the same location too long
Using your credit card frequently for purchases
Making late payments on loans and debts
4
Who requires the highest amount of life insurance if each person had the same take home pay?
A young married man without children
A young single woman with two young children
An elderly retired man, with a wife who is also retired
A young single woman with no children
5
Which of the following will help lower the cost of a home?
Making a smaller down payment at the time of purchase
Paying off the mortgage over a long period of time
Making a larger down payment at the time of purchase
Pay current mortgage interest rate as many years as possible
6
What is a credit report?
A list of your financial assets and liabilities
A monthly credit card statement
A credit line with a financial institution
A loan and bill payment history
7
Your stocks on the stock market are insured by:
The National Deposit Insurance Corporation
No one
The Bank of Canada
The Securities and Exchange Commission
8
In which circumstances would it be beneficial to borrow money?
It is always more beneficial to borrow money
When credit allows someone to get a much better paying job
When something goes on sale
When loan interest is greater than interest from savings
9
Carol plans to start school next year and she needs all of the $$$ she saved. Which is safest?
Corporate bonds
A bank savings account
Mutual funds
Locked in a safe at home
10
Which group would have the biggest problem during longer periods of high inflation?
Older, working couples saving for retirement
Young working couples with children
Young working couples with no children
Older people living on fixed retirement income
11
What happens to buying power if your money earns 3% and the inflation rate is at 5%?
Diminishes
Stays the same
12
What affects the amount of interest that you would pay on a loan?
Your credit rating
How much you borrow
How long you take to repay the loan
All of the above
13
Unit pricing allows easy comparison of the cost of any brand and any package size of grocery.
False
True

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