1. You are closing the purchase of a new home and your closing costs, including

Question

1. You are closing the purchase of a new home and your closing costs, including down payment, are $30 500. What form of payment would the lawyer require?

Select one:

a. Personal cheque

b. Certified cheque

c. Traveller's cheque

d. Money order

2. Which of the following statements is true regarding a review of your credit agency report?

Select one:

a. You will not have authority to make corrections, as the information must come from a financial institution.

b. It will help determine if there are credit cards you should apply for to improve your credit standing.

c. It will reveal deficiencies that you can work on to improve your credit rating.

d. It will reveal if you have sufficient income to carry the new debt payments.

3. You have $3,000 that you may need any day to replace the furnace in your house. Which of the following would be the best place to put the $3000?

Select one:

a. A one-year fixed-rate GIC earning 4 percent

b. An ETF earning 5 percent

c. A common stock mutual fund earning 9 percent

d. A savings account earning 2 percent

4. Which of the following is most accurate about interest rates in Canada?

Select one:

a. Payday loan companies provide a necessary service and have permission to charge above the maximum loan rate in Canada.

b. In Canada, the regulation of payday loans is the responsibility of the federal government only.

c. Charging a rate of 3 percent for a seven day payday loan is legal in Canada.

d. The maximum interest rate that can be charged on a consumer loan in Canada is 60 percent.

5. Regarding automobile insurance,

Select one:

a. the best time to shop for rates is while you are at the car dealership.

b. it is better to compare costs before you commit to buying a particular car.

c. most cars cost the same to insure if the driver is the same.

d. you can lower your costs by buying a more expensive car that is less likely to have accidents.

Explanation / Answer

Ans 1) correct answer is money order i.e., option D.

Ans 2) c. It will reveal deficiencies that you can work on to improve your credit rating.

Ans 3) correct answer is a saving account earning 2%. Since it can be required any day saving account is best among the all.

Ans 4) d. The maximum interest rate that can be charged on a consumer loan in Canada is 60 percent.

Ans 5) b. it is better to compare costs before you commit to buying a particular car.

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