Product Knowledge Quiz April 2019

The PowerPay Facility is the correct answer because it offers online shopping, competitive interest rates, and a reward tied to the funds utilized. This facility provides a convenient online platform for shopping, offers competitive interest rates for financial transactions, and rewards clients based on the amount of funds they utilize.

The A+ Savings Account offers interest on balances as low as $25, which is a benefit for customers who want to earn interest even with a small amount of money. Additionally, the account encourages saving and financial discipline, which can help individuals develop good financial habits and achieve their savings goals. Therefore, the correct answer is I and III.

The University PowerPay Facility is the correct answer because it is specifically mentioned in the question that the parent is looking for a financial solution to assist their university student in meeting term time expenses. The University PowerPay Facility is likely a financial program or service offered by the university that provides students with a convenient way to manage and pay for their expenses during the academic term.

The Linx Card should be offered to a client looking for something safer than carrying around cash because it provides protection with the use of a PIN. Additionally, it does not have an annual fee and can be utilized at both ATMs and point of sale terminals.

The correct answer is Booster Savings. Booster Savings is the most suitable option for a saver who wants to save for the future while having the flexibility to withdraw funds when needed. This type of account typically offers a higher interest rate compared to a regular savings account, allowing the saver to grow their savings faster. Additionally, Booster Savings accounts often have no or low minimum balance requirements and may offer features like no withdrawal fees or limited access to funds without penalties. This makes it an ideal choice for individuals who want to save for the future while maintaining some liquidity.

The Classic Card is the correct answer because it meets all the given criteria. It is cheaper than using a credit card, safer than carrying cash, allows online shopping, has an annual fee of $150, and does not charge reload fees.

Investing in equities provides several benefits. Firstly, it offers income generation through dividends, which are a portion of the company's profits distributed to shareholders. Secondly, it provides capital appreciation as the value of the shares can increase over time. Thirdly, there is no minimum holding period, allowing investors to buy and sell shares as per their convenience. However, equities cannot be held as collateral for loans or other financial transactions. Therefore, the correct answer is option c, which includes all the benefits mentioned.

The high net worth individual who wants to invest in global markets while conducting their own research should be offered JMMB Interactive. This product is likely to provide the individual with the necessary tools and resources to research and invest in global markets independently. Bonds and equities may not offer the same level of flexibility and control over the investment decisions. Sure Investor is not a suitable option as it does not provide any information on its features or benefits.

Pro-chequing would be the recommended account for a middle-income personal banking client wishing to have access to cheques. This account is specifically designed for clients who frequently write cheques and need easy access to their funds. It offers features such as unlimited cheque writing, low or no monthly fees, and sometimes even interest on the account balance. This makes it a suitable option for individuals who need the convenience and flexibility of writing cheques for their financial transactions.

The main reason for suggesting the opening of a Business Current Account during a financial planning conversation with a client is because it is illegal to commingle business and personal funds. By having a separate account for business transactions, it ensures that the client maintains proper financial records and avoids any legal issues or complications that may arise from mixing personal and business funds.

The correct answer is "All of the above." This means that all of the mentioned products, including mutual funds, step-up rate deposit, sure investor, and fixed income solutions, can be offered as part of a financial planning conversation on retirement planning.

The Private Plus account would be recommended for the emerging high net worth client who desires access to cheques. This account is specifically designed for high net worth individuals and offers a range of exclusive benefits and services, including the ability to write cheques. The Current account is a basic account without any special features, while the Pro-chequing account may not be suitable for high net worth individuals. The Step-up Rate Deposit account is a savings account and does not offer the desired cheque access.

Equity refers to shares or stocks of a company. Investing in equity can provide capital appreciation on the price of the shares, as the value of the company increases. It can also generate income through dividends, which are a portion of the company's profits distributed to shareholders. Unlike some other investment options, there is no minimum holding period for equity investments, allowing investors to buy and sell shares as needed. Additionally, equity investments can be used as collateral for loans if necessary. Therefore, based on the given characteristics, equity is the most suitable answer.

Mutual funds are a suitable option for a client looking for a low risk, medium term investment as they typically offer a diversified portfolio of stocks, bonds, and other securities. They also provide returns while preserving capital, as the fund manager aims to generate income while minimizing the risk of loss. Mutual funds generally do not have withdrawal fees, allowing the client to access their funds easily when needed. Additionally, mutual funds can be held as collateral, providing additional flexibility for the client.

Save to Own is the recommended account because it is specifically designed to help individuals save for a down payment on a home. This account allows clients to deposit money regularly and earn interest on their savings, helping them accumulate the required down payment over time. It is a suitable option for someone who does not currently have the necessary funds but wants to work towards owning a home in the future.