Question 1

Households with higher education and income tend to have greater wealth.

Accepted Answer

Studies show that there is a positive correlation between higher education, higher income, and greater wealth accumulation. This is due to the fact that individuals with higher levels of education and income are more likely to have access to better job opportunities, higher salaries, and benefits, which in turn leads to greater financial security and wealth accumulation over time.

Question 2

Women hold equal amounts of wealth as men, but single households hold more wealth than two-adult households.

Accepted Answer

This statement is false. According to a study by the Federal Reserve, as of 2019, the median wealth for single women was $62,000 compared to $120,000 for single men and $280,000 for two-adult households.

Question 3

Although net worth disparities show a clear division in wealth across Canada, some inequalities stay hidden from it.

Accepted Answer

While net worth disparities do show a division in wealth, there are other inequalities that can remain hidden, such as differences in access to education, healthcare, and social services.

Question 4

Households with one or more members with a disability accumulate less wealth than other households.

Accepted Answer

Studies have shown that households with one or more members with a disability tend to have lower incomes and higher expenses related to healthcare and disability-related services, which can result in less accumulation of wealth over time.

Question 5

Inequality is equally apparent in net worth and assets.

Accepted Answer

Inequality in net worth and assets can vary significantly due to factors such as income disparities, access to financial opportunities, inheritance, and savings habits, making the degree of inequality in these areas not necessarily equal.

Question 6

Financial assets are primarily located in high-income and high-wealth neighbourhoods compared to non-financial ones.

Accepted Answer

Studies and data analysis have shown that financial assets such as investments, stocks, and real estate are primarily located in high-income and high-wealth neighbourhoods. This is because individuals in these neighbourhoods have more disposable income to invest in financial assets and have access to financial advisors and institutions. Non-financial assets such as household items and personal belongings are more evenly distributed across neighbourhoods.

Question 7

Households with higher levels of income have higher debt.

Accepted Answer

This statement is generally true as households with higher income levels have greater access to credit and may be more willing to take on debt in order to maintain a certain standard of living or fund investments. However, there are individual cases where households with lower incomes may have higher debt due to financial struggles or an inability to make ends meet without borrowing.

Question 8

Debt is always bad, and access to credit markets and debt is unimportant for wealth.

Accepted Answer

While too much debt can certainly be a problem, a moderate amount of debt can be useful for achieving goals like buying a house or starting a business. Access to credit markets can also provide opportunities for investing and growing wealth. It's important to manage debt wisely and not become overly dependent on credit, but it's not accurate to say that debt and access to credit are always bad or unimportant for wealth.

Question 9

Between 2005 and 2012, the use of short-term high-interest payday loans decreased by 27 percent in Canadian households.

Accepted Answer

Between 2005 and 2012, the use of short-term high-interest payday loans actually increased in Canadian households, reflecting a growing reliance on this form of credit by certain segments of the population.

Question 10

Homeownership is the largest source of debt in Canada.

Accepted Answer

According to a report from the Canadian Institute of Actuaries, homeownership is the largest source of debt for Canadians, surpassing credit card debt, car loans, and student loans.

Question 11

What are some barriers faced by young adults to build wealth and homeownership?

Accepted Answer

The answer of What are some barriers faced by young...

Question 12

What are the key differences between wealth and income? How do levels of wealth affect inequality?

Accepted Answer

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Question 13

What is net worth? How can this be used to describe a wealthy person? How can it be used to see how wealth is distributed in a population?

Accepted Answer

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Question 14

How is data on wealth collected and analyzed? What organizations provide this data and what conclusions can you make from the information they provide?

Accepted Answer

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Question 15

What are total assets? How do different assets affect inequality at different levels?

Accepted Answer

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Question 16

What is the difference between total secured debt and unsecured debt? How can there be positive aspects of wealth?

Accepted Answer

The answer of What is the difference between total secured...

Question 17

How has homeownership affected wealth inequalities? How does this affect renters?

Accepted Answer

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Question 18

Explain the concept of wealth. How does it perpetuate advantages and disadvantages in society? Describe how wealth is divided between Canada and what this represents for the general population.

Accepted Answer

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Question 19

What are some factors that increase wealth disparities? How are Indigenous peoples, immigrants and other minorities affected by wealth disparities? Explain the challenges connected to wealth acquisition for them.

Accepted Answer

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Question 20

Describe the main wealth equation and its parts and the equation for home wealth. What needs to be included to effectively calculate wealth and understand the disparities that exist among levels of wealth in Canada?

Accepted Answer

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Quiz 3: Breaking Down the Wealth Equation: Housing, Assets, and Debt