one is unable to cover at the moment -start a new business -pay for new equipment/improve their business Online banking -check account balances -pay bills -transfer funds from one account to another -check account balances -pay overhead expenses -keep track of the profit made
Lesson 17 17.a. Type of investment Yield Growth Risk Liquidity i) savings account Very low yield No growth Very low risk High liquidity ii) guarantee investment certificate Little to higher than yield depending on how long the fixed investment is No growth Little to low risk Around middle or average liquidity (since you can still easily access the money, but just not whenever you want) iii) bonds Low yield, varies depending on which bond, but mainly under 5% Little to high growth depending on when the bond is sold (during or after the maturity date) No growth while still possessing the bond. Little to very low risk Very liquid, when sold (you can just sell it to get the cash). iv) stock Little to no yield (depending on the company’s profits) Moderate to high growth depending on when the stocks are sold, however, there is no growth while one still possess a stock Somewhat risky (in between low and high risk), since you do not know how much you would make while still owning a stock Very liquid, since you need to sell the stock shares to get the money v) mutual funds Moderate to higher yields Middle to high growth depending on what is invested Low risk to secure funds, higher to growth fund and income-producing funds, since some of the money is invested into riskier stocks Low to high liquidity depending on where the money was invested into, and where it was able to make a profit vi) real estate Low to moderate yield Moderate to high growth, since property usually cost more as time goes by Little to around the middle risk Not liquid to somewhat higher liquid, depending on how well the property will sell, and for how much b. Ethical funds are a number of companies chosen to take part of one’s fund due to the fact that they behave and act in a way socially responsible and in ethical ways. They are the people who support the
environment and sustainable development, help business development within Native peoples’ communities, have no part in working with dictatorships, are for medical research and education, act fairly between trade companies, and do not force hard labor in third world countries. Ethical Fund Company, Meritas Mutual Funds, and the Citizens Bank of Canada are all categorized in this group.
Lesson 18 18.a. Based on Mr. Covallo’s profile, it is difficult to decide whether or not granting him a loan is a good idea. Looking at his character, although he is a high school graduate (age not given), he has no credit history in the past. Not only that, but his employment length is not as long, nor is his time at his present address. Additionally, he has a part-time job, which may or may not question his ability to pay back the money, if given. However, looking at his capacity, he has no dependants or current debts, and his living
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- Winter '15
- Credit card, bank account