Financial Literacy Quiz 6 Grades 10-12

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* 1. Rivie's family is in the market to purchase a house. After years of renting and saving, they finally have a substantive down payment. What is the recommended deposit to purchase a home in Canada?

20%

10%

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* 2. Rivie's family had calculated their ability to purchase a house at mortgage rate of 4%. How will rising interest rates impact their purchase?

Monthly costs will be higher

Purchase price may be lower

They may have to save more for the down payment

All of the above

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* 3. Rivie's family pre-qualified for a mortgage of $450,000. What is the difference in their monthly payment if the mortgage interest rate went from 4% to 5.5%?

Approximately $300

Approximately $350

Approximately $400

Approximately $450

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* 4. Once Rivie's family have purchased and occupied their new home, how will they protect their investment?

Put up a tall fence

Purchase house and property insurance

Install an alarm system

All of the above

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* 5. Both Rivie's parents work full time and depend on both incomes to support the family and maintain their new home. How can they protect themselves if one of them becomes ill and cannot work?

Purchase disability insurance

Purchase critical illness insurance

Enroll in a group plan at work to cover disability

Any of the above

Watch the following video and answer the questions that follow: https://finlit101.ca/en/topic/intro-to-insurance

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* 6. What factors can affect the insurance rate that Rivie's family will pay for both their house and property as well as their disability insurance?

The geographic area in which they live

History of insurance claims

Whether they smoke or not

Value they are insuring

Risk of something going wrong

All of the above

Watch the following video and answer the questions that follow: https://finlit101.ca/en/topic/avoiding-frauds-and-scams

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* 7. If something sounds too good to be true, it probably is! Explain what this means.

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* 8. What can you do to protect yourself from a scam?

Disclose personal information online

Pay a digital bill that you do not remember buying

Click on links that come in your email or text messages

None of the above

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* 9. How can you protect your money?

Review your bank account regularly and report anything activity that is not yours

Hang up when you get a scam call from places like the CRA. CRA, financial institutions and other companies will never call you.

Do not share your social insurance number

All of the above

Watch the following video and answer the questions that follow: https://www.youtube.com/watch?v=y6-qLdNoYI0

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* 10. What is risk?

Probability of your return being less than expected

Probability of your return being more than expected

Both

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* 11. If interest rates rise, what type of risk is that?

Capital risk

Market Risk

Liquidity Risk

Firm Specific Risk

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* 12. If you are investing for a high return, what should you consider investing in?

Real Estate

Savings Account

Small Business

Stocks