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BEST Program: Financial Literacy 2 Flashcards | StudBud

Explore/BEST Program: Financial Literacy 2

What’s the biggest factor in compound interest growth?

Stocks represent ownership in a company

BEST Program: Financial Literacy 2

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Financial Literacy week 2

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Questions 10

Answers

1
Stocks represent ownership in a company
True
False
2
What’s the biggest factor in compound interest growth?
Your monthly budget
The number of years you leave it invested
The amount you invest
The interest rate
3
Which of the following actions can positively impact your credit score?
Missing a credit card payment
Paying your credit card balance in full each month
Applying for multiple credit cards in a short period
Keeping your credit card balance above 50%
4
Which of the following is TRUE about a TFSA?
You can invest in stocks and ETFs within a TFSA
Contribution room doesn’t carry forward
You can only put cash in a TFSA
You need earned income to contribute
5
TFSA withdrawals are taxed
True
False
6
The FHSA combines features of which two accounts?
TFSA and GIC
RRSP and RESP
RRSP and TFSA
TFSA and RRSP loan
7
What’s the main benefit of an RRSP?
Unlimited contribution room
Tax-free withdrawals
Withdrawals are tax-free anytime
Tax-deductible contributions
8
What’s the biggest benefit of ETFs?
They allow diversification
They avoid all risks
They guarantee profits
They have high fees
9
Investing is completely risk-free
True
False
10
What is the main goal of investing?
To keep your money safe in the bank
To spend money on luxury items
To avoid all financial risks
To grow your money over time