Financial Literacy: How do You Score? | Canadian Mortgages Inc. , 'opacity': false, 'speedIn': , 'speedOut': , 'changeSpeed': , 'overlayShow': false, 'overlayOpacity': "", 'overlayColor': "", 'titleShow': false, 'titlePosition': '', 'enableEscapeButton': false, 'showCloseButton': false, 'showNavArrows': false, 'hideOnOverlayClick': false, 'hideOnContentClick': false, 'width': , 'height': , 'transitionIn': "", 'transitionOut': "", 'centerOnScroll': false }); })
  • Follow us on
  • Facebook
  • Twitter
  • Linked In

For a no fee consultation call: 888-465-1432

Financial Literacy: How do You Score?

This Thursday will mark the beginning of Financial Literacy Month, a month to reflect about how much you know about the economy and finances and more specifically, your own personal balance sheet. Throughout November we’ll undoubtedly see a number of surveys and studies indicating the financial literacy of Canadians; but before they start coming in, we wanted to give you a chance to take your own financial literacy quiz. No automation here, grab a paper and pencil (if there’s still any in your house) and start marking your answers down. When you get to the very bottom you’ll see the answers so you can check yours. But no peeking until then!

1.) Will your savings have as much buying power in a year as it does now if the interest rate on those savings is 3% and the rate of inflation is at 5%?
A) Yes
B) No

2.) A credit report is ________
A) A listing of financial assets and liabilities
B) A monthly statement regarding credit card purchases
C) A history on your loan and bill payments
D) A credit line held with a major financial institution

3.) Who insures stocks on the stock market?
A) The federal government
B) The Securities and Exchange Commission
C) The Bank of Canada
D) No one

4.) When at the grocery store, comparing unit cost of items rather than the ticket price is a better way to compare the true cost.
A) True
B) False

5.) If each of the following people were paid the same amount in salary, who would need the most amount of life insurance?
A) A young single woman with two children under the age of 6
B) A young single woman with no children
C) A retired senior citizen man, with a retired senior citizen wife
D) A young married man with no children

6.) Imagine you have a savings account with a major financial institution (maybe you do already.) Which of the following statements is true concerning the interest on that account?
A) That interest may have sales tax applied to it
B) Interest cannot be earned until the account holder’s 18th birthday
C) The interest in your savings account can never be taxed
D) If that interest reaches a certain amount, income tax could be applied to it

7.) Assume that Canada were to go through a period of high inflation that lasted for three years or more. Which group would suffer the most from it?
A) Young working couples with no children
B) Young working couples with children
C) Older, working couples saving for retirement
D) Older people living on fixed retirement income

8.) Carrie is planning on attending university next year. She has $10,000 saved and needs every penny of it. Where should she store it until it’s time for her to pay for school?
A) Corporate bonds
B) Mutual funds
C) Savings account with a major financial institution
D) Stowed away safely at home
E) Stocks

9.) The Jones Family is looking to invest some of their savings. They have heard inflation was going to go up rather sharply, and they want to protect their money, making sure it has as much purchasing power as possible when they need to take it out. Which is the best form of investment for them to use?
A) 25-year corporate bond
B) Purchasing a home with a fixed rate mortgage
C) 10-year corporate bond
D) Deposit certificate issued by a major financial institution

10.) When is it most beneficial to pay for something with borrowed money now, and pay for it in the future?
A) In the event of a large sale
B) If the interest on the loan amount is more than the interest rate on your savings account
C) If the item being purchased will allow someone to get a much better job, such as a nice new suit
D) Always

Want to check your score? Here are the answers:

1.) b; 2.) c; 3.) d; 4.) a; 5.) a; 6.) c and d; 7.) d; 8.) c; 9.) b; 10.) c

Leave a Reply








Security Code: