Exam 5: Banking Services and Managing Your Money

Which of the following is a non-profit depository institution that provides services only to members who have a common affiliation?

Describe four factors you should consider when choosing a financial institution.

Which of the following accounts would tend to give you the higher interest combined with access to your funds with a few days notice?

Describe the method you should use to optimize the allocation of your short-term investments.

Funds set aside for an emergency fund can be invested for short to medium terms in a money market fund.

There is no real difference between the rates paid to you on savings accounts by all of the large banks, such as RBC Financial, CIBC, and BMO Group.

Which of the following would normally offer the best rate of return?

Describe how interest rates affect your personal budget, income statement, and balance sheet. What account groups do they affect? Give two specific examples.

You have $10,000 to invest for short-term liquidity needs in a declining interest rate period. Pick the best investment.

You should select only one financial institution for all of your chequing, savings, and investing needs.

The type of financing that allows you to pay for a purchase at a later time when the bill arrives is

The bank who sponsors an ABM machine will charge a service fee, as will the bank that you are withdrawing the money from, resulting in two separate bank charges.

Which of the following companies would help to administer your will?

Stockbrokers make markets to put together eager buyers and sellers of securities.

Credit unions may be a good choice for your bank because they are non-profit, provincially incorporated institutions owned by those who use them.

Which of the following is an advantage of using a debit card?

Which of the following is true regarding guaranteed investment certificates (GICs)?

To join a credit union, you need to

John has overdraft protection which has a fee of five dollars per use and a 21 percent annual interest charge. This month John's unexpected car expense caused his account to become overdrawn by $1200 for two weeks until his pay cheque was deposited. What was the total expense for John? NSF fees at his bank are $35.

A GIC that is not cashable for five years will pay a higher rate than a GIC that has a five-year term but is cashable at any time.