Question 1

Key components of a financial plan do not include

Accepted Answer

A) financing. 
B) budgeting and tax planning. 
C) investing. 
D) goal setting. 
A) financing. 
B) budgeting and tax planning. 
C) investing. 
D) goal setting.

Question 2

You must be employed before you can establish a credit rating.

Accepted Answer

A) True 
 B)False

Question 3

John earns $3000 monthly income and he decides to set aside 10 percent as savings.In his savings,John wants to reserve 20 percent in his emergency fund.What amount would John accumulate in his emergency fund annually?

Accepted Answer

A) $600 
B) $300 
C) $360 
D) $720 
A) $600 
B) $300 
C) $360 
D) $720

Question 4

The rate of return on Marika's investments has not been sufficient to meet her retirement goals.What should Marika do regarding her financial plan?

Accepted Answer

A) Delay her retirement a few years 
B) Revise her plan 
C) Increase her income 
D) Reduce her expenses 
A) Delay her retirement a few years 
B) Revise her plan 
C) Increase her income 
D) Reduce her expenses

Question 5

Which of the following will not affect your ability to manage your liquidity?

Accepted Answer

A) Deciding how much money to keep in savings 
B) Choosing between credit cards 
C) Determining how much money to save versus how much to spend 
D) Maintaining a monthly budget with allocations for expenses and investments 
A) Deciding how much money to keep in savings 
B) Choosing between credit cards 
C) Determining how much money to save versus how much to spend 
D) Maintaining a monthly budget with allocations for expenses and investments

Question 6

John is in the early earnings life stage of financial planning.Which of the following is most important for John to address?

Accepted Answer

A) The pay yourself first principle 
B) Paying off debts 
C) A will and power of attorney 
D) Establishing a credit rating 
A) The pay yourself first principle 
B) Paying off debts 
C) A will and power of attorney 
D) Establishing a credit rating

Question 7

For each dollar of personal income received in 2012,Canadians saved 33 cents.

Accepted Answer

A) True 
 B)False

Question 8

The value of what you own minus the value of what you owe is called your "net assets."

Accepted Answer

A) True 
 B)False

Question 9

Only the wealthiest 10 percent of the population need to be concerned with estate planning,since estate tax has been almost eliminated for most people.

Accepted Answer

A) True 
 B)False

Question 10

A car accident which is not fully covered by your insurance is an example of an unexpected expense you cannot plan for.

Accepted Answer

A) True 
 B)False

Question 11

The first step in budgeting is to evaluate your current financial position by determining your net worth.

Accepted Answer

A) True 
 B)False

Question 12

Many people who believe they have strong personal finance skills do not really understand some basic personal finance concepts.

Accepted Answer

A) True 
 B)False

Question 13

Explain why an increase in your income does not necessarily mean an increase in net worth.

Accepted Answer

1.It does not make any difference what y

Question 14

Which of the following is included in risk management?

Accepted Answer

A) Determining your risk tolerance for investing in the stock market 
B) Determining your credit risk for obtaining a $400 000 mortgage 
C) Establishing a good credit rating 
D) Insuring your home 
A) Determining your risk tolerance for investing in the stock market 
B) Determining your credit risk for obtaining a $400 000 mortgage 
C) Establishing a good credit rating 
D) Insuring your home

Question 15

Explain four sources from which you could obtain assistance with your financial plan and identify any areas of caution you should observe while accepting such advice.

Accepted Answer

Possible options:
1.Financial adviser: p

Question 16

If John's total assets have increased from $10 000 to $15 000 and his liabilities from $5000 to $8000,by how much has John's net worth increased?

Accepted Answer

A) $4000 
B) $3000 
C) $5000 
D) $2000 
A) $4000 
B) $3000 
C) $5000 
D) $2000

Question 17

Which of the following best describes the level of per capita debt for Canadians?

Accepted Answer

A) Canadian per capita debt is improving for those under age 20. 
B) The per capita bankruptcies have increased 3.9 times between 1990 and 2011. 
C) Debt has increased 3.9 times between 1982 and 2012. 
D) Canadian debt as a percentage of disposable income has increased to 39 percent in 2012. 
A) Canadian per capita debt is improving for those under age 20. 
B) The per capita bankruptcies have increased 3.9 times between 1990 and 2011. 
C) Debt has increased 3.9 times between 1982 and 2012. 
D) Canadian debt as a percentage of disposable income has increased to 39 percent in 2012.

Question 18

Alex has become stressed by his tight budget and is unwilling to stick to his financial plan.What action should he take?

Accepted Answer

A) Establish his goals 
B) Re-evaluate his goals 
C) Implement the best plan 
D) Revise his plan 
A) Establish his goals 
B) Re-evaluate his goals 
C) Implement the best plan 
D) Revise his plan

Question 19

Which of the following would defeat the efforts made in developing a successful financial plan?

Accepted Answer

A) Establishing your financial goals 
B) Considering your current financial position 
C) Identifying and evaluate alternative plans that could achieve your goals 
D) Evaluating your financial plan every five years 
A) Establishing your financial goals 
B) Considering your current financial position 
C) Identifying and evaluate alternative plans that could achieve your goals 
D) Evaluating your financial plan every five years

Question 20

What is the term used to describe decisions on how much credit you need to support spending and which sources of credit to use?

Accepted Answer

A) Investment management 
B) Money management 
C) Credit management 
D) Liquidity management 
A) Investment management 
B) Money management 
C) Credit management 
D) Liquidity management

Key components of a financial plan do not include

You must be employed before you can establish a credit rating.

John earns $3000 monthly income and he decides to set aside 10 percent as savings.In his savings,John wants to reserve 20 percent in his emergency fund.What amount would John accumulate in his emergency fund annually?

The rate of return on Marika's investments has not been sufficient to meet her retirement goals.What should Marika do regarding her financial plan?

Which of the following will not affect your ability to manage your liquidity?

John is in the early earnings life stage of financial planning.Which of the following is most important for John to address?

For each dollar of personal income received in 2012,Canadians saved 33 cents.

The value of what you own minus the value of what you owe is called your "net assets."

Only the wealthiest 10 percent of the population need to be concerned with estate planning,since estate tax has been almost eliminated for most people.

A car accident which is not fully covered by your insurance is an example of an unexpected expense you cannot plan for.

The first step in budgeting is to evaluate your current financial position by determining your net worth.

Many people who believe they have strong personal finance skills do not really understand some basic personal finance concepts.

Explain why an increase in your income does not necessarily mean an increase in net worth.

Which of the following is included in risk management?

Explain four sources from which you could obtain assistance with your financial plan and identify any areas of caution you should observe while accepting such advice.

If John's total assets have increased from $10 000 to $15 000 and his liabilities from $5000 to $8000,by how much has John's net worth increased?

Which of the following best describes the level of per capita debt for Canadians?

Alex has become stressed by his tight budget and is unwilling to stick to his financial plan.What action should he take?

Which of the following would defeat the efforts made in developing a successful financial plan?

What is the term used to describe decisions on how much credit you need to support spending and which sources of credit to use?

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters

Exam 1: Overview of a Financial Plan

Key components of a financial plan do not include

You must be employed before you can establish a credit rating.

John earns $3000 monthly income and he decides to set aside 10 percent as savings.In his savings,John wants to reserve 20 percent in his emergency fund.What amount would John accumulate in his emergency fund annually?

The rate of return on Marika's investments has not been sufficient to meet her retirement goals.What should Marika do regarding her financial plan?

Which of the following will not affect your ability to manage your liquidity?

John is in the early earnings life stage of financial planning.Which of the following is most important for John to address?

For each dollar of personal income received in 2012,Canadians saved 33 cents.

The value of what you own minus the value of what you owe is called your "net assets."

Only the wealthiest 10 percent of the population need to be concerned with estate planning,since estate tax has been almost eliminated for most people.

A car accident which is not fully covered by your insurance is an example of an unexpected expense you cannot plan for.

The first step in budgeting is to evaluate your current financial position by determining your net worth.

Many people who believe they have strong personal finance skills do not really understand some basic personal finance concepts.

Explain why an increase in your income does not necessarily mean an increase in net worth.

Which of the following is included in risk management?

Explain four sources from which you could obtain assistance with your financial plan and identify any areas of caution you should observe while accepting such advice.

If John's total assets have increased from $10 000 to $15 000 and his liabilities from $5000 to $8000,by how much has John's net worth increased?

Which of the following best describes the level of per capita debt for Canadians?

Alex has become stressed by his tight budget and is unwilling to stick to his financial plan.What action should he take?

Which of the following would defeat the efforts made in developing a successful financial plan?

What is the term used to describe decisions on how much credit you need to support spending and which sources of credit to use?

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters