In comparing and contrasting debit and credit cards, it could be said that:

Credit cards buy now, pay later but debit cards pay now

Takes straight out of your bank account

One problem with credit cards is that

you can get yourself into debt if you aren't careful.

Which of the following is not an eligibility for RRSP

Contribute until dec31 of the year you turn 65

Can I have more than one TFSA?

Yes, as long as the combined contributions don't exceed my total limit.

What is the difference between debit & credit cards?

The money spent with a debit card is taken from your own bank account.

Banks use saving accounts deposits to:

give loans to consumers and businesses

TFSA vs. RRSP. Select the answer that is FALSE

You contribute to an RRSP with "after-tax" money.

Which of the following is not a characteristic of an RRSP?

You need to be 18 or older to have one

What is the difference between a TFSA and an RRSP?

With a TFSA, you don't need income to have contribution room

Financial literacy is ...

Knowing where to find and which numbers you should know

The Goal of Investments are:

Make a profit off of a purchase

TFSA Contribution: How do I find out how much I can contribute to my TFSA?

Look at your Canada Revenue Agency "My Account".

What is one reason to open a TFSA account?

You want to reduce taxes on your investments

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BANKING BASICS

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Questions 33

Answers

1
In comparing and contrasting debit and credit cards, it could be said that:
They function the same
Debit cards buy now, pay later but credit cards pay now
Credit cards are not as accepted as debit cards
Credit cards buy now, pay later but debit cards pay now
2
Debit cards
You pay at an agreement date
You spend money and pay it at the end of the month
You get a discount or gift card at a shop
Takes straight out of your bank account
3
One problem with credit cards is that
you can get cash all over the world with one.
the money comes right from your checking account.
they don't have many fees.
you can get yourself into debt if you aren't careful.
4
Which of the following is not an eligibility for RRSP
Must earn income and file tax returns
No minimum age requirement
Contribute until dec31 of the year you turn 65
Valid social insurance
5
When a financial institution lends money, what do they charge borrowers?
Credit
Stock
Debits
Interest
6
Can I have more than one TFSA?
Yes, as long as the combined contributions don't exceed my total limit.
No. My bank has the highest interest rates on savings accounts anyway.
No, all my registered accounts have to be at the same bank.
Yes, and each account can hold my whole contribution limit.
7
If a teenager wants a bank loan, the bank will require...
30 days' notice
his/her parents to take out a loan first
collateral
a co-signer
8
What is the difference between debit & credit cards?
There isn't one.
The name.
Debit cards let you buy whatever you want, credit cards have a capped limit
The money spent with a debit card is taken from your own bank account.
9
Banks use saving accounts deposits to:
Pay for employee special projects
give loans to consumers and businesses
Improve the quality of life in low-income communities
Make their services attractive for new depositors
10
Drawbacks of RRSP accounts are:
can only put $90,000 in the account per year
no tax-free withdrawals
no more contributions can be made after the age of 50
no drawbacks
11
TFSA vs. RRSP. Select the answer that is FALSE
You are not taxed on any investment income earned in a TFSA.
You contribute to an RRSP with "after-tax" money.
You pay tax on any withdrawals from an RRSP
You contribute to a TFSA with "after-tax" money.
12
Can you contribute to someone else's TFSA?
Yes
No
13
You can gain compound interest in your RRSP but not your TFSA
True
False
14
In Canada how old do you have to be to open a TFSA?
No age, but you have to have an accpetable sum of money
18 yrs
over 20 yrs
16 yrs
15
What is maximum yearly contribution you can make to a TFSA?
$6000
$5500
$5000
$6500
16
Which of the following is not a characteristic of an RRSP?
Not taxed until money is withdrawn
A type of investment portfolio
You need to be 18 or older to have one
Reduces taxable income
17
What is the difference between a TFSA and an RRSP?
Nothing is different, this is a trick question
With a TFSA, you don't need income to have contribution room
The name
Contribution to a TFSA are tax deductible
18
Investments in a TFSA are taxed....
When you put them into the TFSA
When you withdraw money from the TFSA
Never
When you earn interest on investments from the TFSA
19
One drawback to electronic banking is the lack of
paper trail
permanent record
daylight
20
Financial literacy is ...
Being able to budget
Knowing where to find and which numbers you should know
having an accountant
Knowing all your numbers all the time
21
RRSP accounts are better for short-term savings
False
True
22
The Goal of Investments are:
Spend a lot of money
Make a profit off of a purchase
Make Interest off of a purchase.
Not loose any money
23
Debit and Credit Cards
Require a 10 digit PIN number
Require a 6 digit PIN number
Require a 5 digit PIN number
Require a 4 digit PIN number
24
How often can you contribute to your TFSA?
As often as you want
10-15 times every month
2-4 times every week
25
Credit Cards
Take payment at once
Are the same same as Debit Cards
Charge interest
Are free to use
26
Credit cards and debit cards are the same.
False
True
27
TFSA Contribution: How do I find out how much I can contribute to my TFSA?
There is no limit
Every year it is $6,000 and always has been.
Look at your Canada Revenue Agency "My Account".
My bank will tell me if I over-contribute
28
What is one reason to open a TFSA account?
It gives you bragging rights in the long run
It increases taxes on everything but a certain account
You want to reduce taxes on your investments
It makes you sound smarter
29
RESP and RRSP are identical.
True
False
30
Which of the following investments is most risky?
treasury bills
real estate
stocks
savings
31
Where can you get an RRSP from?
Credit Union
Insurance Companies
Banks
All of the above
32
What is a TFSA?
Tax Forward Savings Account
Top Forward Spending Account
Top Free Spending Account
Tax Free Savings Account
33
Electronic banking uses __________________________ to transfer funds electronically.
Paperless
Computer Terminals
E-banking
Debit

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