Chapter 4: Banking Services Quiz

<p>Guaranteed rate of return (B)</p> Signup and view all the answers

<p>Regular savings accounts (C)</p> Signup and view all the answers

<p>Money Market Funds (B)</p> Signup and view all the answers

<p>Transaction fees (A)</p> Signup and view all the answers

<p>Your financial goals and time horizon (C)</p> Signup and view all the answers

<p>Money market accounts are insured, while money market funds are not. (B)</p> Signup and view all the answers

<p>Regular savings accounts (A)</p> Signup and view all the answers

<p>Investing unneeded funds in a savings account (D)</p> Signup and view all the answers

<p>Insurance (A)</p> Signup and view all the answers

<p>To simplify the process of paying bills and managing finances (A)</p> Signup and view all the answers

<p>Paying for groceries with a debit card (D)</p> Signup and view all the answers

<p>Meeting daily money needs, managing liquid assets, planning for future expenses (A)</p> Signup and view all the answers

<p>Compounding interest effect (D)</p> Signup and view all the answers

<p>It decreases the real value of returns. (D)</p> Signup and view all the answers

<p>Personal investment goals (B)</p> Signup and view all the answers

<p>To insure up to $100,000 per person per institution (A)</p> Signup and view all the answers

<p>Daily (C)</p> Signup and view all the answers

<p>They directly reduce the net interest earned. (A)</p> Signup and view all the answers

<p>The ability to convert investments into cash quickly (A)</p> Signup and view all the answers

<p>Annual compounding (B)</p> Signup and view all the answers

<p>A minimum balance must be maintained (B)</p> Signup and view all the answers

<p>Fees and charges associated with the account (D)</p> Signup and view all the answers

<p>Activity account (C)</p> Signup and view all the answers

<p>Money market account (B)</p> Signup and view all the answers

<p>Monthly service charge (B)</p> Signup and view all the answers

<p>Personal ethics (D)</p> Signup and view all the answers

<p>It prevents declined transactions (D)</p> Signup and view all the answers

<p>Cost of maintaining personal relationships (D)</p> Signup and view all the answers

<p>Accessibility of funds (D)</p> Signup and view all the answers

<p>Pawnshop (A)</p> Signup and view all the answers

<p>The choice of financial services often involves a trade-off between return and liquidity. (B)</p> Signup and view all the answers

<p>Invest in long-term loans to secure current low interest rates. (A)</p> Signup and view all the answers

<p>Chartered banks, trust companies, and credit unions. (C)</p> Signup and view all the answers

<p>Time and money savings, convenience for transactions, and no paper trail for identity thieves. (B)</p> Signup and view all the answers

<p>A comprehensive evaluation should consider services, rates, fees, financial advice, safety, convenience, online services, and special programs. (A)</p> Signup and view all the answers

<p>Schedule III banks are subsidiaries of foreign banks operating within Canada. (A)</p> Signup and view all the answers

<p>Potential for higher returns on savings accounts compared to traditional banks. (D)</p> Signup and view all the answers

<p>Potential for privacy and security breaches through online platforms. (B)</p> Signup and view all the answers

<p>Offering short-term loans against the value of personal property. (D)</p> Signup and view all the answers

Elements that influence how consumers choose financial services.

Different entities providing financial services like banks and credit unions.

Common ways to make payments include cash, debit, and credit cards.

Errors like overspending or not saving enough liquid assets.

Categories of services like savings, payments, and borrowing.

The potential lost gain when choosing one financial service over another.

Interest rate changes affect loans and savings strategies differently depending on their duration.

Institutions that accept deposits, including banks and credit unions.

Financial entities that do not accept deposits but provide financial services like loans and insurance.

Advantages of online banking include savings in time and money and convenience in transactions.

Issues with online banking include privacy, security, and potential fees.

Services offered by banks to manage checks, including issuing and stopping payments.

A system that allows electronic presentation and payment of bills online.

Evaluating banks based on services, rates, fees, and convenience before choosing.

Fees charged for transactions like withdrawals or deposits.

The lowest balance you must maintain to avoid fees.

Standard accounts with a monthly fee if minimum balance not maintained.

An account that charges fees per cheque written.

A chequing account that pays interest with a minimum balance.

A service that allows transactions exceeding the account balance.

Different ways to make payments like cheques and cards.

Criteria like fees, interest, and services that influence account choice.

Key aspects like return rate and safety for assessing savings plans.

Percentage increase in the value of an investment due to interest earned.

Earning interest on both the initial principal and the accumulated interest from previous periods.

The actual return on an investment taking compounding into account over a year.

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

How easily an asset can be converted into cash without a significant loss in value.

The degree of protection against financial loss, often provided by insurance or guarantees.

Factors regarding how taxes impact the interest earned on investments.

Insurance that protects deposits up to $100,000 per person per financial institution in Canada.

Accounts with low minimum balance and ease of withdrawal, but low returns.

Investment with a guaranteed return for a set period but may have withdrawal penalties.

Investment that guarantees returns for a fixed time and is insured up to $100,000.

Accounts that provide checking privileges and earn some interest, though often very low.

Accounts offering higher returns with some check-writing abilities but may require a higher balance.

Investment funds that provide favorable return rates but are not insured and can have fees.

High-yield savings accounts with accessible funds but potential transaction fees.

Low balance requirements and withdrawal ease, with insured amounts.

May incur penalties for early withdrawal and require minimum deposits.

Factors influencing selection of savings plans include personal financial goals and preferences.