You Have $5000 Saved in Case You May Need to Replace

question 63

Multiple Choice

You have $5000 saved in case you may need to replace the furnace in your house which has been acting up.Which of the following would be the best place to put the $5000?

• A)A one-year fixed-rate GIC earning four percent
• B)A stock mutual fund which earned nine percent in the past year
• C)A term deposit earning three percent held in a TFSA
• D)A high interest savings account earning three percent

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders in a company.

Ending Capital Balance

Ending capital balance is the amount of money a company has in its capital account at the end of a financial period after all financial transactions have been accounted for.

Beginning Capital Balance

The amount of capital at the start of a financial period before any transactions have been accounted for during the period.

Withdrawals

Money or assets taken out from a business by its owner for personal use or from a bank account by the account holder.