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Test your general money and investing knowledge.
1. Canada Deposit Insurance Corporation (CDIC) is a federal government agency that ensures some of your savings if your bank or trust goes out of business. Which of the following investments do they protect?
2. Which of the following investments pay interest?
3. A stockbroker calls you to see if you want to invest $10,000 in a stock that is going public tomorrow. He tells you that several of your friends have bought in and they suggested he contact you. What should you do?
4. Money saved in a Registered Retirement Savings Plan (RRSP) can be used to:
5. Jim has a line of credit that charges him 4% per year on the $4,000 he borrowed. Jim's financial planner mentions that he can get Jim a Guaranteed Investment Certificate (GIC) that pays 4% right now. Jim just got a bonus of $2,000 at work. Is Jim financially better off buying the GIC or paying off half of his line of credit? Assume that Jim has used all of his TFSA and RRSP room, so the GIC would be taxable.
6. What is the most successful strategy for saving money for a home down payment?
7. Sue started her RRSP at age 20 and put in $2,000 each year for 15 years. Rebecca started her RRSP at age 35 and put in $2,000 each year for 30 years. If they both get 6% per year on their investments, who will have more money at age 65?
8. Which of the following savings accounts gives you the most money after five years?
9. Which is the lowest cost way to borrow money for a few months?
10. If you are married, which statement is true?
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