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

question 29

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.Term deposits 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 a term deposit
• 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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Definitions:

Instrumental

Characterized by practicality and utility, often prioritizing efficiency and effectiveness towards achieving a goal.

Rational

Pertaining to actions, decisions, or beliefs that are based on reason or logical analysis rather than emotions or irrational factors.

Collective Nature

The inherent characteristics or behaviors that emerge from the interactions and relationships within groups or societies.

Macro Level

Macro level refers to a wide-scale approach to understanding societal structures and processes, looking at societal phenomena as a whole rather than focusing on individuals.