Your Chartered Bank Is Offering a One-Year GIC with an Interest

question 73

Multiple Choice

Your chartered bank is offering a one-year GIC with an interest rate of two percent,and a one-year cashable GIC at one and a half percent.Canada Savings Bonds (CSB) are paying one percent.You have $10 000 to invest of which you feel $5000 is ample for emergency fund purposes.How should you invest your funds given the scenario above?

• A)$5 000 in the one-year GIC and $5 000 in CSBs
• B)$5 000 in the one-year GIC and $5 000 in the one-year cashable GIC
• C)$10,000 in the one-year GIC
• D)$10,000 in the one-year cashable GIC

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