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Canadian Deposit Insurance Quiz

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					Canadian Deposit Insurance Quiz

1. Which of the following investments (in Canadian currency) at a CDIC member
institution is NOT eligible for deposit insurance coverage?

a) A three-year GIC (Guaranteed Investment Certificate)
b) A savings account
c) A mutual fund
d) A chequing account

2. Which financial institutions can be members of CDIC?

a) Banks, credit unions and insurance companies
b) Banks, trust companies and loan companies
c) Banks, trust companies and investment dealers
d) Trust, companies, credit unions and loan companies

3. You plan to purchase a $50,000 Guaranteed Investment Certificate (GIC) in Canadian
funds at a CDIC member institution. To be eligible for deposit insurance, what is the
maximum term of this deposit?

a) Three years
b) Five years
c) Ten years
d) The term of the deposit does not affect its eligibility for deposit insurance

4. You hold the following deposits in your name at a CDIC member institution:
Savings account in Canadian currency                             $12,000
Savings account in US currency                                   $10,000
Chequing account in Canadian currency                            $7,000
5-year GIC in Canadian currency (value at maturity)              $40,000
How much would be covered by CDIC deposit insurance?



5. You invested $90,000 in a five-year GIC in Canadian funds at a CDIC member
institution. To date, it has earned $18,000 in interest, bringing the total value to $108,000.
You have no other deposits at this institution. How much would CDIC insure if the
member institution failed?
6. You have deposits at two financial institutions that are both CDIC members.
You have $70,000 in a savings account in Canadian currency at a bank. You also have a
two-year GIC worth $90,000, including principal and interest, at a trust company. What
is the total amount of your deposits protected by CDIC?



7. You have a four-year GIC in Canadian funds worth $85,000 (including principal and
interest) at a CDIC member institution. At the same institution, you and your spouse
jointly hold a five-year GIC worth $150,000 in Canadian funds. How much is protected
by CDIC deposit insurance?


8. In your Registered Retirement Savings Plan (RRSP) at a CDIC member institution,
you hold $60,000 in one-year GICs and $140,000 in mutual funds, all in Canadian
currency. What amount is protected by deposit insurance?


9. Which of the following statements about CDIC protection for deposits held in RRSPs
is false?

 a) Some types of RRSP investments available from CDIC member institutions are
ineligible for deposit insurance.
 b) The maximum deposit insurance for eligible deposits held in your RRSP at one CDIC
member institution is $100,000, including principal and interest.
c) CDIC insures eligible deposits held in your RRSP separately from other deposits in
your name at the same member institution.
d) If you have two RRSPs at the same member institution, CDIC insures eligible deposits
in each of them separately to a maximum of $100,000.

10. You are the trustee of a savings account in Canadian currency held in trust for your
grandchild at a CDIC member institution. Both you and your grandchild also have other
deposits in your own names at the same member institution. Which of the following
statements correctly describes the deposit insurance coverage that would apply?
 a) The savings account held in trust would be combined with all other eligible deposits in
your own name at this institution, and CDIC would insure the combined deposits to a
maximum of $100,000.
b) The savings account held in trust would be combined with all other eligible deposits in
the name of your grandchild (i.e. the beneficiary) at this institution, and CDIC would
insure the combined deposits to a maximum of $100,000.
c) If the trustee and the beneficiary are clearly identified on the financial institution's
records, CDIC insures the savings account held in trust separately from other eligible
deposits in your name or in the name of your grandchild at the same member institution.
d) CDIC does not insure deposits held in trust.

				
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posted:7/23/2011
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