Mr. Bedi's Classroom



Planning 10 Name:________________________ Block:______ Financial Literacy Exam Multiple Choice- please circle the letter which represents the best answer.This occurs when prices of goods and services increase.Deflation.Inflation.Ablation.Multiplier Effect.With regards to a savings account, paying yourself first means saving the first _______% of your income after deductions.Five.Ten.Fifteen.Twenty.Which of the following is not true in regards to taxes?Taxes are a compulsory payment.Taxes raise revenue for governments.Taxes are collected at three government levels.Taxes may only be collected directly.Which of the following is true of the Goods and Services Tax (GST)?It is a provincial tax.It is a territorial tax.It is a federal tax.It is a provincial/federal tax.It is an unfair taxProperty taxes are paid to this level of government.Municipal.Provincial.Territorial.Federal.Customs duties must be paid on these types of goods.Local goods.Domestic goods.Imported goods.Excise goods.Federal goodsWith regards to insurance, this is the first part of the loss.Deductible.pensation.Replacement.This is a type of loan, which is paid over a set period of time.Term.Demand.Consumer.None of the above answers are correct.? Which of the following best defines liquidity?A type of loan made only for those customers who are financially secure.The exchange of money for products or services.The order in which assets can be most readily turned into cash.A type of investment which guarantees a minimum yield of two percent.Which of the following has the lowest liquidity?House.Saving Account.New Car.Chequing Account.This is another word for equities.GIC’s.Shares. Term Deposits.Mutual Funds.This is when you spread your money over a variety of investments.Risk.Diversification.Yield.Containerization.This is the uncertainty about the results of an expected return.Risk.Diversification.Yield.Containerizatioin.Which of the following is not a form of credit?Mortgage.Stocks.Charge Card.Line of Credit.In which example is the most interest charged on a credit card?A phone transaction.A gasoline purchase.An ATM withdrawal.A point of purchase sale.If expenses were to exceed income on a spending plan, what would be a financially smart solution?decrease deductionsincrease expensesdecrease spendingincrease taxesnone of the aboveWhich of the following best describes the term “minimum wage?” a fixed yearly payment paid monthlya payment made to employees for working extra hoursthe lowest amount legally a firm can pay its employeesa payment for reaching an employee target.The rule of 72 states that in order to discover how long it takes an investment to double.you must divide the interest rate per period by 72you must divide 72 by the interest rate per periodcompound interest is divided by 72the number 72 is divided by simple interestnone of the aboveWhich is not a useful criterion for students shopping for a credit card? APRGrace periodBalance computation methodEquity balanceAny associated feesWhat is a SIN?It is a number used by provincial government for ID purposesUsed by your city for census informationUsed by schools to identify you for tax purposesNeeded in order to claim a tuition refundNone of the aboveAn insurance premium is:Used to pay an injured partyDeducted from house insuranceA payment the insured makes in exchange for compensationA payment the insured makes for any losses sustainedNone of the aboveTrue or False. _____ The decrease in inflation is known as reflation._____ A Canada Savings Bond has a high risk and high expected return._____ Compound interest is the interest paid on the initial deposit. _____ Only banks are regulated by the Canada Deposit Insurance Corporation_____ Banks are run as non-profit organizations._____ In order for a business to operate it must have a business license._____ Travel insurance only covers travel within Canada._____ Credit card interest is low compared to line of credit interest._____ Wants should be included in any spending plan._____ A chequing account helps make paying bills and charting spending easierMatching_____ A financial institution owned by its members._____ Allows you to withdraw money even if there’s not enough in your account _____ Paying for purchase with borrowed money_____ Another name for hidden taxes_____ An electronic bank teller_____ Insurance coverage from injuries/illness that prevent you from working_____ Insurance coverage in case of accidental death._____ Insurance which covers valuables in y our home (appliances, clothes, etc.)_____ Insurance which covers extensive damage to your vehicle._____ This is another word for liabilities._____ A record of the financial positions of a business at specific date_____ A record of one’s personal financial statement within a given month_____ Essentially these are loans to the government_____ A short-term debt security issued by the government_____Units in a pool of money managed by a money manager.a. Credit Union f. Content k. Balance Sheetb. Credit Card g. Collisions l. Overdraftc. ATM h. Debts m. Indirectd. Disability i. Budget n. Lifee. Bonds j. Mutual funds o. Treasury bill ................
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