Question 16:

a)
Automated teller machine (ATM) and debit card
Debit cards are one of the most popular ways to access money in your checking
or savings account. These cards give you flexible access to your money. You can
use a debit card to make purchases without accumulating interest because the
money comes directly from your checking account. Debit cards can take the
place of writing checks, paying with cash or using a credit card.
ATMs are used to withdraw money at your own convenience since they are
located in places where the actual bank is not. They allow customers to use their
debit cards to withdraw money from their account without stepping into the
bank.
Mortgage Loan
This product offers the customer financing to purchase a home through the bank.
It gives the customer the chance to live in the house as they pay the mortgage
until they finish, where full ownership is transferred to the customer.
Savings account
It offers the customer the opportunity of putting away their money in a safe
place for the short term.
b)
Type of
financial
institution
Deposit taking
Securities

Example of a
product or
service
Safety deposit
box
Stocks

Insurance

Health insurance

What does the product or service do?

Store for customers to put their valuable

items
Gives the customer the chance to invest in
listed companies in the stock exchange
Gives the customer financial peace of mind
in case of health problems

c)
Financial
services
Bank cards

Travellers
cheques
Direct deposits

People use them to...

Businesses use them to...

Making purchases in
stores and withdrawing
money on ATMs
Make purchases while
travelling in other
countries
Deposit money to the

Make purchases for stock on credit

and also to withdraw money for daily
use
Accept cash from banks on behalf of
the customer
Make cash deposits to their business

Loans
Online banking

bank accounts, savings

or checking
Buying cars, travel and
other personal things
Make online purchases
and check account
balance

accounts
Set up a new business or expanding
an existing one
Manage your business finances and
cash flow. With easy to use
navigation and financial tools and
calculators, managing your business
finances is even easier than before.

Question 17:
a)
Type of Investment
Savings account
Guaranteed
investment
certificate
iii) Bonds
iv) Stock
Mutual funds
vi) Real estate

Yield
Very low
yield
Relative
yield

Growth
No growth

Risk
Very low risk

Liquidity
High liquidity

Relative
growth

Low risk

Medium
liquidity

Relative
yield
Low to
high yield
Relative
yield
High yield

Relative
growth
High growth

Low risk

Medium to
Low
High liquidity

Relative
growth
High growth

Mild risk

High risk

Low risk

Medium
liquidity
Low to high

b)
Ethical funds are a group of companies chosen to be part of a fund because they
behave socially responsible and ethical ways. An example is Bank of Montreal.

Question 18:
a)
Three Cs of
credit
Character

Rating
(1-4)
2

Capacity

Explanation of rating
He has had a part time job for the past 3 years and
now has a new part time job showing he is reliable,
but he has no credit history. Also the fact that he
has only lived in his current address for 3 months is
not the best
He earns $250 per week and his monthly expenses

Capital

are $600 and he has no debt. His monthly loan

payments will be $207.58 which he can
comfortably be able to pay
His assets are only $1600 which is way less than
the $10000 loan amount meaning in case of
default, the bank would not be able to recover the
amount.

b)
i) 5 years 2 month
1077.22
ii) 1 year 3 months
248.16
iii) 2498.13
iv) 964.34
v) 289,595.47
vi) 179,858.64

Question 19:
a)
Acquire the skates at a wholesale price and sell them to customers in their store
for a higher price.
b)
Consideration
Cost
Quality
Guarantee

Service
Money available
Product information

Bauer Vapor 1X Sl
$449.99
Top of the line Bauer ice
skates
90 days from the
consumer date of
purchase
Free Shipping
$4000
Skate with more agility in

CCM RibCor 50K Pump

$349.99
Top of the line CCM ice
skates
60 days from the
consumer date of
purchase
Free shipping
$4000
The CCM RibCor 50K Ice

Style

this tapered- fitting

skate. With a standard fit
in the toe box and a
narrower V-fit in the
ankle and heel, players
can accelerate and turn
in the ultimate skate built
for quickness and
mobility
3D Lasted, Aluminized
Curv Composite with
thermoformed X-rib
pattern
37.5 Polyester Liner
with Total Edge
Comfort patches
Lightweight Memory
Foam Ankle Pads
Form Fit Lite with Curv
Composite
Anaform Speed Plate with
Ortho-resin Technology
Full Lightweight
Composite with
exhaust vents
Tuuk LightSpeed Edge
Holder

Hockey Skate is the

premier model in the new
CCM RibCor Line. This
50K utilizes a totally
reengineered RibCor Elite
Quarter Package;
providing some of the
best out of box comfort
and agility on the market.
RibCor Elite with the
FlexCore inner Core
Most efficient Pump to
date for personalized
fit with added comfort
Enhanced pro ribbed
reinforcement
harnesses flexion for
maximum power
Heat-moldable FlexCore
Dual zone with tacky
nash and Clarino
Composite midsole
Carbon composite
outsole
Griptonite
TriGuard tongue
SpeedBlade 4.0
SpeedBlade Black

c)
Gross Revenue = $7999.99 ($899.99x5 bauer skates + $699.99x5 ccm skates)
Gross Profit = Gross Revenue Cost of Goods Sold = ($7999.99-$4000) =
$3999.99
Net Profit = Gross Profit Overhead Expenses = ($3999.99-$2000) = $1999.99
Question 20:

Step
Start keeping records and decide what
is important

Identify my income and expenses

Description
Write down any money coming in and
going out of my pocket and figure out
where I want to be financially in the
future
I already know my income. List all my

Record my expenses

Create monthly spending targets

Prepare a monthly budget form

Balance the budget

Analyze the budget

expenses under specific categories

Put down figures of previous expenses
from past months and use them as the
starting position.
Create targets for each expense
category so as to be able to monitor
my expenses
Have my income at the top and start
listing my expenses all the way down in
a column with the targets listed in the
next column
Fill in the actual column and ensure all
the expenses are recorded and the left
over money is close to what was
estimated
Observe the differences between
actual and estimates and fix
overspending. Use the actual for this
month as estimates for the next
month.

Gross Income from all sources

Salary: $2000
Expense Categories
Monthly Actual
Monthly expenditures
Emergency Fund
$70
$70
Savings
100
100
Investment
250
250
Rent
526.32
526.32
Electricity
40
40
Water
15
15
Phone
25
25
Internet
20
20
Food
180
200
Car fuel
60
60
Entertainment
200
16
Miscellaneous
30
50
Total Expenditures
$1316.32
$1316.32