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:

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.

Coerce Behavior

To compel or force someone to act in a certain way through pressure or threats.

Economic Efficiency

The optimal distribution of resources in society, taking into account all benefits and costs.

Government Failures

Occur when government intervention in the economy leads to inefficiencies, misallocation of resources, or negative outcomes contrary to the intended goals.