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BBI Financial Literacy Flashcards | StudBud
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BBI Financial Literacy
BBI Financial Literacy
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#financial literacy #business
Flashcards
38 cards
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Questions
38
Answers
1
What do we use to track how much money we earn and how much we spend?
SMART plan
income statement
bank transactions
budget
2
Disposable income is ....
money available to put in a savings account
money to left to spend as you will
money after the government has taken it chunk
money left to spend on variable expenses
3
A fad
Something people adopt & want to be part of but starts and stops quickly
Something that lasts a long time
is a stable investment opportunity for business
4
A means of saving for retirement which does not get taxed until funds are removed.
TFSA
RRSP
GIC
RESP
5
A person's previous behaviour is assessed when deciding whether the person is a good risk.
collateral
capital
capacity
character
6
An advantage of having a credit card is
creating a credit history
in case of emergency
all are advantages
tacking your spending
7
When the stock market prices keep going up and people are actively buying stocks it is called a
bull market
buying high market
greedy market
bear market
8
How can you create a good credit rating?
bounce a cheque
forget to pay your 407 bill
pay you cell phone bill
have money owing on credit card
9
What does the term principal mean when dealing with borrowed money?
original value of borrowed funds
amount still owing on loan
interest paid over the length of loan
none of these
10
The value of the stock can change on a hourly, daily basis. This is called ____________.
trading value
market value
variable value
book value
11
Another name for interest
compound
rate of return
simple
yield
12
Investments ranked from lowest potential return to highest risk are:
Bonds, GIC, collectibles, stocks
Collectibles, stocks, bonds, GIC
Stocks, bonds, collectibles GIC
GIC, bonds, stocks, collectibles
13
Financial institution(s) that are organized by groups of people who share their resources are:
Chartered Banks
Trust Companies
Credit Unions
Insurance Companies
14
There are several important functions of the Bank of Canada. The most important one is
none of the above
take deposits from individuals and banks
regulate the money supply
make loans to business
15
Factors that influence consumers needs and wants include
culture
all
income
age
16
3 C's of credit include all but one of the following
capacity
capability
character
capital
17
When comparing savings and investing we know that investing:
all of the above
Has a higher rate of return
Has lower liquidity
Has a greater degree of risk
18
When selling stocks on the market the seller has a(n) ______________.
ask price
firm price
bid price
offering
19
Why might a company decide to offer their shares on a public exchange as an IPO?
Provide original investors with a return on investment
Transform a private company to a public company
all of the above
Raise funds to grow company
20
People often put up something of value to secure a loan. It is called?
collateral
collectible
capital
ponzi scheme
21
The concept of putting money away on a regular or automatic basis.
paying yourself first
investing
golden rule
saving plan
22
Investments that are risky tend to be....
less stressful
good in short term
low liquidity
most profitable
23
Fixed expenses could include
entertainment
rent
food
vacation
24
What is the role of the Canadian Deposit Insurance Company (CDIC)?
place for insurance companies to hold funds
insures depositor's funds
part of the Bank of Canada
where insurance funds are pooled
25
How do financial institutions make money?
monthly fee for bank account
charging interest on loans
all are means of making money
investing depositors money
26
When investing it is always good to have a ....
slush fund
savings plan
broker
nerves of steel
27
Which item has greater liquidity?
Condo
Star Wars action figure
GIC
Snapchat stock
28
a want
water
something that is essential
something that you can't live without
something that is not required for survival
29
Transportation would be what type of expense?
variable expense
surprise expense
fixed expense
arbitrary expense
30
The difference between the original price of the stock and the sale price is called __________
capital gains/loss
interest
book value
market value
31
Interest calculated on the deposit amount is
simple
compound
yield
rate of interest
32
An example of something that is obsolete
Desks
Flat screens
cell phones
Rotary phones
33
An expense that is the same month after money is called
rent expense
variable expense
cell phone bill
fixed expense
34
Marketers convince consumers their wants are needs. What are actual needs?
goods that provide pleasure
maintain rep with peeps
keep up with trends
provide for survival
35
What is collateral?
business capital
a form of investment
something of value put up to secure a loan
support from the bank
36
RDPD talks about the idea of paying yourself first or it could be called _______________
short term goal
SMART goal
the golden rule
savings plan
37
What is it called when your money makes money or your interest earns interest?
return on investment
rate of return
compound interest
simple interest
38
Why would people get a credit card?
convenience
protect against fraudulent use
create a credit history
all of these
