in An illustrative look at news and events

minutes

Are you financially savvy?

According to a recent survey done by Statistics Canada, Canadians scored an
average of 67% on their financial quiz. How well do you think you can do?
1 If the inflation rate is 5%
and the interest rate you
get on your savings is 3%,
will your savings have at
6
least as much buying power
in a year’s time?
a) Yes b) No
If you had a savings account
at a bank, which of the
following statements would
be correct concerning the
9 Which of the following
interest that you would earn
on this account?
a) Sales tax may be charged
types of investment would
best protect the purchas-
ing power of a family’s
12
savings in the event of a
sudden increase in
inflation?
a) A twenty-five year
How well did
Canadians score?
Which of the following
can hurt your credit
rating?
a) Making late payments
Older people fared better
64.1% 66.0% 67.2% 67.1% 67.5%
on loans and debts by age
b) Staying in one job
too long

2
on the interest that you earn c) Living in the same
A credit report is…? corporate bond

-24

-34

-54

4
-4

-6
b) You cannot earn interest location too long

18

25

45

a) A list of your financial
assets and liabilities
b) A monthly credit card
until you pass your 18th
birthday
c) Earnings from savings
b) A house financed with a
fixed-rate mortgage
c) A 10-year bond issued
55
35
d) Using your credit card Couples fared better
frequently for purchases
66.6% 67.7% 67.2% 63.6% 64.3%

13
statement account interest may not by a corporation What can affect the
c) A loan and bill payment be taxed d) A certificate of deposit amount of interest
history d) Income tax may be at a bank that you would pay by family status

d) A credit line with a
financial institution
10
charged on the interest on a loan?
Under which of the
if your income is high a) Your credit rating
enough following circumstances

gle

on ple

ild ith

ren le

r
3
b) How much you borrow

he
would it be financially

pa ing
Co y

ren

t
ch le w
Sin

Ot
l
7

Co

S
Who insures your stocks in beneficial to borrow money

the stock market?
a) The National Deposit
Insurance Corporation
b) The Securities and
Exchange Commission
c) The Bank of Canada
d) No one
up
Inflation can cause c) How long you take to
to buy something now and repay the loan
difficulty in many ways.
Which group would have the
repay it with future income?
d) All of the above
68.8% 73.1%
60.0%
greatest problem during a) When something is on sale Higher
periods of high inflation educated
by education
14
b) When the interest on
that lasts several years? the loan is greater than Which of the following people
a) Young working couples the interest obtained from will help lower the cost fared
of a house? better
with no children a savings account
a) Paying off the mortgage

gre y
r le ool

nd st-
b) Young working c) When buying something

de rsit
co po

Un y
ss

e
a o sch
over a long period of time

ar
4

ive
By using unit pricing at couples with children on credit allows someone to

se e m
lom gh

the grocery store, you
can easily compare
the cost of any brand
and any package size.
a) True b) False
c) Older, working couples
saving for retirement
d) Older people living on
fixed retirement income
get a much better paying job
d) It is always more beneficial
to borrow money to buy
something now and repay
it with future income
So
dip Hi
b) Agreeing to pay the current
rate of interest on the mortgage
for as many years as possible Self-employed people fared better
c) Making a larger down
67.4% 69.6% 67.9% 62.8%
payment at the time of 60.9%

8
purchase

5
Lindsay has saved $12,000

If each of the following
persons had the same
amount of take home pay,
who would need the greatest
amount of life insurance?
11
for her university expenses Which of the following d) Making a smaller down by labour force
by working part-time. Her statements is not payment at the time of
plan is to start university correct about most purchase
next year and she needs all ATM (Automated Teller
Machine) cards?
d

ed

ed

r
of the money she saved.

he
The average score
ye

ye
loy

tir

Ot
plo

plo

Re
Which of the following is the
mp

a) A young single woman a) You can get cash anywhere for men taking this
Em

em
lf e

Un

with two young children safest place for her univer- in the world with no fee survey was higher
Se

sity money? than that of women

b) A young single woman b) You must have a bank Albertans are the most financially savvy
without children a) Corporate bonds account to have an ATM card 68.0% 65.1% 69.5% 69.2%
c) An elderly retired man, b) Mutual Funds c) You can generally get cash 64.0% 64.0% 67.1% 67.3%
with a wife who is also retired c) A bank savings account 24 hours-a-day
Male vs.
d) A young married man
without children
d) Locked in a safe at home d) You can generally obtain
information concerning your
female by province
e) Stocks bank balance at an ATM
Answers (% that answered correctly) Male Female Atlantic Que. Ont. Man./Sask. Alta. B.C.

1. b 70% 4. a 76% 7. d 57% 10. c 30% 13. d 75%

2. c 51% 5. a 81% 8. c 68% 11. a 79% 14. c 92%
3. d 38% 6. c 14% 9. b 43% 12. a 94%
Sources: Statistics Canada
d 64% ANTHONY GREEN/QMI AGENCY