Financial Literacy Quiz 4 - Grades 7-9

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* 1. Harley is buying a car. The car costs $9400. How might Harley pay for the car?

Savings

Car Loan

Line of Credit

Credit Card

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* 2. If Harley decides to use $2500 is savings and borrow $7000 in a car loan to be repaid at 4% interest over 2 years, How much will the car actually cost?

$9804

$9795

$9500

$7304

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* 3. If Harley was able to convince the car dealer to accept payment by credit card, and Harley took the same amount of time to repay the $7000, would the cost of borrowing be higher or lower than the car loan?

Higher

Lower

Same

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* 4. Harley was unsuccessful in securing a car loan because he did not have a great credit rating. What are some of the reasons why Harley would not have a good credit rating?

No credit history

Bills not paid on time

Lapsed loan

All of the above

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* 5. Harley really wants the car, he does not have enough savings to pay for it and he has been turned down for the car loan. Rather than waiting until he can save some more, and improve his credit score, he decides to turn to a pay day loan. Why is this a bad decision?

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* 6. Harley realizes that without further education, he will not be able to achieve the goals he has. He has decided to return to school and become a skilled trades person. Which of the following investments might help Harley finance his education?

RESP

CESG

RRSP

RSP

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* 7. How can Harley's family receive "free" money from the government to help pay for Harley's post secondary education?

Investing in an RESP

Investing in a CESG

Investing in a GIC

Investing in an RSP

Watch the following video and answer the questions that follow: https://finlit101.ca/en/topic/tips-for-investing

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* 8. What is the magic of compound interest?

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* 9. If Harley had invested his $2500 savings in a 2 year GIC paying 4% interest, how much money would he have after two years?

$2670

$2704

$2890

$2500

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* 10. Harley want to diversify his investments. Why do you think he should do that?

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* 11. Once Harley graduates from post secondary and begins his career, how might his financial goals change?

Harley may want to set aside some of his earnings for retirement

Harley may want to purchase a house or condo

Harley may have a family and want to save for their education

All of the above

Financial Literacy Quiz 4 - Grades 7-9

Question Title

* 1. Harley is buying a car. The car costs $9400. How might Harley pay for the car?

Question Title

* 2. If Harley decides to use $2500 is savings and borrow $7000 in a car loan to be repaid at 4% interest over 2 years, How much will the car actually cost?

Question Title

* 3. If Harley was able to convince the car dealer to accept payment by credit card, and Harley took the same amount of time to repay the $7000, would the cost of borrowing be higher or lower than the car loan?

Question Title

* 4. Harley was unsuccessful in securing a car loan because he did not have a great credit rating. What are some of the reasons why Harley would not have a good credit rating?

Question Title

* 5. Harley really wants the car, he does not have enough savings to pay for it and he has been turned down for the car loan. Rather than waiting until he can save some more, and improve his credit score, he decides to turn to a pay day loan. Why is this a bad decision?

Question Title

* 6. Harley realizes that without further education, he will not be able to achieve the goals he has. He has decided to return to school and become a skilled trades person. Which of the following investments might help Harley finance his education?

Question Title

* 7. How can Harley's family receive "free" money from the government to help pay for Harley's post secondary education?

Question Title

* 8. What is the magic of compound interest?

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* 9. If Harley had invested his $2500 savings in a 2 year GIC paying 4% interest, how much money would he have after two years?

Question Title

* 10. Harley want to diversify his investments. Why do you think he should do that?

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* 11. Once Harley graduates from post secondary and begins his career, how might his financial goals change?

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* 12. What is a TFSA and how can it help Harley in achieving his goals?