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An example of something that is obsolete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