Exam 2: Managing Your Financial Resources - Banking Services and Managing Your Money

Money market funds are insured investments that invest in very safe investments and have a very low risk of default.

A Canada Savings Bond is a typical investment in a money market fund.

You have $5000 saved in case you may need to replace the furnace in your house which has been acting up.Which of the following would be the best place to put the $5000?

Rashid's monthly expenses are $4000 and he expects that his cash flow will always be sufficient to cover his expenses.How much should he ideally have in his emergency fund?

Overdraft protection normally is available with

Schedule I,II and III banks offer essentially the same services.

Because they have lower overhead,web-based financial institutions tend to pay higher interest rates on deposits than institutions with physical branches.

Jeff put $50 into a chequing account with a balance of $600.He then withdrew funds using the ABM machine 14 times that month at a cost of $1.50 per withdrawal and wrote 12 cheques at a cost of $0.50 each.The account also has a monthly charge of five dollars.What are the total bank charges for the month?

To join a credit union,you need to

If you have $10 000 that you do not expect to need for expenses in the next few years and you wish to put it somewhere so that it will earn a return,which of the following financial institutions would be the best option?

Chartered banks are the only financial institutions which offer insurance on deposits.

Research two financial institutions on the web and compare them based on important factors you should consider when choosing a financial institution.What advantages do they each give to students? How does that change once one is no longer a student? Indicate and justify which institution you feel would be better for you.Cite your sources.

You have $5000 saved which you may need for home repairs at any time in the next few years.If you did need the funds,you would have a weeks' notice to access the funds.Which of the following would likely give you the best return for your $5000?

Which of the following is a disadvantage of using debits cards over credit cards?

Which of the following will not vary at a chartered bank?

Bank fees for using an automatic banking machine (ABM)are not usually a significant consideration in choosing a bank with which to do business.

If you were taking out a personal loan,the highest rate would probably be charged by a

Deposits in commercial banks that are members of the CDIC are insured up to a maximum of $50 000 per account.

Which of the following financial institutions specialize in making personal loans to people who are perceived to have a higher risk of default?

Debit cards and credit cards both offer the benefit of short-term financing.