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How knowledgeable are you? Find out with this online financial knowledge quiz.
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| 3. | Credit cards can be the downfall of many people. Although they are often convenient and can sometimes save you money, they can lead you into debt. To prevent this, how can you use credit cards to your advantage?
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 | | Shop around for your card. To compare which option is the least costly option for you, use the free comparison calculator at the Strategis Website. |
| Stick to one or two major credit cards. Avoid specialty-store cards, which often charge interest rates which are six or seven points higher than the major bank cards. |
| Obtain a card that charges little or no yearly fee. |
| All of the above. |
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| 4. | When filing your income tax, which type of income is unnecessary to claim?
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| | An Inheritance |
| Salary or Wages |
| Research Grants |
| Social Assistance Payments |
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| 5. | Deciding where to park your cash can be puzzling. If you watch the commercials, billboards and ads you'll see a lot of people from various financial institutions doing a lot of handshaking and smiling. This is great, because we all like smiles, but you'll need to look past those smiles. How can you find an institution that will give you the best deal?
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| | Shop around for deals or discounts. Some financial institutions give special rates on service charges, flat-fee service, etc. Some even offer these free! |
| Financial institutions offering online services may save you money as there may be financial incentives if you make on-line transactions. |
| Check to see which financial institutions have ATM machines near you. If you are constantly using another institution's machines, you'll pay extra ATM service charges over the year. |
| All of the above |
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| 6. | Bonds are sold by governments, as well as a variety of companies, in order to:
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| | Raise operating money |
| Prevent capital loss |
| Calculate interest rates |
| Prevent capital gain |
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| 7. | Which of the following is an advantage of purchasing a Provincial Savings Bond (PSB's)
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| | They are available only at certain times during the year (times vary from province to province). |
| They are only redeemable twice a year. |
| You may only be able to buy bonds from the province where you are a resident. |
| You usually have a choice of receiving interest or having it compounded. |
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| 8. | Which of the following is a drawback to obtaining Canada Savings Bonds (CSB's)?
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| | They are a safe interest earning investment. |
| They are government backed and insured. |
| They maintain a constant value and pay interest at a set rate. |
| They have lower interest rates. |
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| 9. | Which of the following places would you NOT get a Guaranteed Investment Certificate (GIC)?
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| | Trust companies |
| Charted banks |
| Wal-Mart |
| Credit Unions |
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| 10. | Putting money in a Tax Sheltered Vehicle means:
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| | You are not taxed until you withdraw money. |
| You will receive a tax break. |
| You can shelter your investments and let them increase without interruption. |
| You can apply for a registered Retirement Savings Plan (RRSP) and/or a Registered Education Savings Plan (RESP). |
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| 11. | The most effective time to redeem an RRSP early is:
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| | When you start high school. |
| When you retire. |
| During your college or university. |
| Never redeem it. Let it build up and see how much you can make on the interest. |
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| 12. | What is the main advantage of having a trust account over a RESP?
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| | Parents don't have to gamble the investments' earnings on whether you continue your education after high school. |
| You don't receive the 20%, Canada Education Savings Grant from the government. |
| It is a safe investment. |
| The money must be used for educational. |
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| 13. | What is the best method for setting up a trust account?
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| | Have a parent open it for you. |
| Have a relative open it for you. |
| Open it yourself. |
| Have a sibling open it for you. |
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| 14. | What is Cash-Value Life Insurance
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| | A type of policy that combines life insurance on the child with a savings or investment component. |
| A policy that is pooled with others and invested for the benefit of those eligible for scholarships. |
| An investment you'd like to make. |
| An account set up on behalf of a child by a parent or legal guardian. |
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| 15. | The main advantage of having a Non-Registered Education Savings Plan is:
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| | You can invest in a range of securities not always found in some RESP plans. These include stocks, the full range of 1,600 or more mutual funds available in Canada, Canada Savings Bonds, GICs and term deposits. |
| No grants or tax deferred earnings. |
| Earnings are taxed each year. |
| Low risk investments may offer only modest growth over the long term and could be eroded by inflation. |
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