Financial Literacy Quiz 4 - Grades 10-12

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* 1. Why do people borrow money?

To buy a house

To buy a car

To invest

To pay off credit cards

All of the above

Watch the following video and answer the questions that follow. https://www.youtube.com/watch?v=m9F12ymm3BM

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* 2. Based on the video, what factors affect your credit score?

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* 3. In what ways does your credit score affect how much you can borrow?

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* 4. Ben wants to buy a car. He has a student loan that he pays $200 a month, he earns $2000 a month at his job. How will the bank determine if Ben is suitable for a car loan?

Check Ben's credit score

Examine Ben's total financial commitments

Consider Ben's after tax income

All of the above

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* 5. How is a credit score calculated?

Payment history on previous credit

Total amount owed to all creditors

Length of credit history

All of the above

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* 6. Susan applied for a credit card when she graduated from high school. She used it a few times to purchase things she needed to get ready for transitioning to work. Susan has been working now for two years and prefers to pay for things with cash or debit, so she has not used her credit card in quite some time. Based on what you learned in the video, how can this impact Susan's credit score?

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* 7. Myrna is planning on attending post secondary school. She hasn't quite decided what she wants to study, but she knows to be successful, she needs to learn how to learn, unlearn and relearn in our ever changing world. How would you suggest Myrna pay for her post secondary education?

Student loan

Savings

Have her family pay

Credit card

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* 8. William Gibson said: "the future is already here, it is just not distributed equitably." What did he mean by this?

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* 9. Once Myrna graduates from post secondary, and begins working, she wants to set aside money from every paycheck to invest in her future. What kinds of investments should Myrna consider?

Equity stocks

Real Estate

Bonds

GIC

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* 10. As a novice investor, what are the advantages for Myrna to purchase mutual funds over individual stocks?

Mutual funds are diversified compared to buying stocks in one company

Stocks cost more

You don't need an investment advisor to purchase mutual funds

There is no risk investing in mutual funds

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* 11. Myrna is also interested in purchasing stocks in companies that are working on reducing the impact of climate change. What should Myrna consider?

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* 12. The stock market can be very volatile. What does this mean?

Prices remain stagnant

Prices can go up and down

The higher a stock price goes the more you have to pay in commission

Too risky to invest in stocks