Saving for Small and Large Purchases
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Questions and Answers

What do taxes help the government do?

  • Give out free smartphones to citizens
  • Fund space exploration
  • Build and repair roads (correct)
  • Provide free meals for everyone
  • What is the main purpose of managing your own money?

  • To feel anxious about handling money
  • To avoid thinking about purchases
  • To make your own purchases without asking parents for money (correct)
  • To complicate buying things
  • What is an important consideration when buying items with saved money?

  • Ignoring the price tag
  • Ensuring the items are the latest model
  • Paying attention to sales tax (correct)
  • Asking for discounts at the store
  • What is the significance of having your own money?

    <p>It is a step towards becoming an adult</p> Signup and view all the answers

    What is the total amount you would pay if you only make the minimum payment each month on a $2000 balance?

    <p>$3443.76</p> Signup and view all the answers

    Why is it advised to pay more than the minimum payment every month?

    <p>To pay off the balance faster and reduce interest over time</p> Signup and view all the answers

    What does the photo accompanying the text depict?

    <p>A person counting money</p> Signup and view all the answers

    What is the purpose of the Financial Consumer Agency of Canada's credit card calculator app?

    <p>To determine how long it will take to pay off a credit card balance</p> Signup and view all the answers

    How much would it cost to buy a bicycle in Ontario if it is priced at $299.99 and the sales tax is 13%?

    <p>$338.98</p> Signup and view all the answers

    What advice does the Financial Consumer Agency of Canada offer to teenagers?

    <p>Managing taxes</p> Signup and view all the answers

    What type of sales tax is the Goods and Services Tax, or GST?

    <p>Federal sales tax</p> Signup and view all the answers

    In which provinces are the GST and PST combined into one single sales tax known as the Harmonized Sales Tax, or HST?

    <p>Ontario and Manitoba</p> Signup and view all the answers

    What is the exchange rate between the Canadian Dollar (CAD) and the U.S. Dollar (USD) mentioned in the article?

    <p>0.73</p> Signup and view all the answers

    What factor determines how much the Canadian Dollar is worth when compared to other currencies?

    <p>Financial market demand</p> Signup and view all the answers

    What is the Provincial Sales Tax (PST) in Quebec known as?

    <p>Quebec Sales Tax (QST)</p> Signup and view all the answers

    Which type of sales tax has a different rate depending on the province in Canada?

    <p>Provincial Sales Tax (PST)</p> Signup and view all the answers

    What does the exchange rate of 0.73 between CAD and USD mean for each currency?

    <p>$1 USD = $0.73 CAD</p> Signup and view all the answers

    In which provinces are the GST and PST not combined into one single sales tax?

    <p>British Columbia and Manitoba</p> Signup and view all the answers

    What determines how much you're actually paying when buying from American stores?

    <p>Daily exchange rate</p> Signup and view all the answers

    What type of sales tax is the Harmonized Sales Tax (HST)?

    <p>Combined sales tax</p> Signup and view all the answers

    What is the value of each Canadian Dollar (CAD) when compared to the U.S. Dollar (USD) based on an exchange rate of 0.73?

    <p>$1 USD = $0.73 CAD</p> Signup and view all the answers

    Where can one find out about the daily exchange rates between Canada and the United States?

    <p>Financial market websites</p> Signup and view all the answers

    What is the most common way to save money for larger purchases?

    <p>Putting money in a savings account</p> Signup and view all the answers

    What type of bank account is typically used for storing money to use regularly, such as for paying bills?

    <p>Chequing account</p> Signup and view all the answers

    What is interest in the context of a savings account?

    <p>The money the bank pays for storing your money</p> Signup and view all the answers

    What is the typical interest rate for a regular savings account?

    <p>0.01% per day</p> Signup and view all the answers

    What is a bank fee?

    <p>The fee charged by the bank for their services</p> Signup and view all the answers

    What do you typically receive along with your bank account?

    <p>A bank card (debit card)</p> Signup and view all the answers

    What is credit in the context of financial institutions?

    <p>Money given to you as a loan with interest</p> Signup and view all the answers

    How often is the interest on credit calculated?

    <p>Daily</p> Signup and view all the answers

    How much of the original $2000 balance goes towards paying off the interest if the minimum payment is made?

    <p>$26.40</p> Signup and view all the answers

    If you owe $2000 on a credit card with an annual interest rate of 16%, how much is the daily interest rate?

    <p>0.044%</p> Signup and view all the answers

    What kind of account is recommended for storing money to use regularly?

    <p>Chequing account</p> Signup and view all the answers

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