Question 1

Write out three goals in SMART format.

Accepted Answer

There are many possibilities,however,the

Question 2

Regarding cash flow,which of the following is not correct?

Accepted Answer

A) Insurance payments are a cash outflow. 
B) Investing in stock is a cash outflow. 
C) Buying items on sale is a cash inflow. 
D) Salary is a cash inflow. 
A) Insurance payments are a cash outflow. 
B) Investing in stock is a cash outflow. 
C) Buying items on sale is a cash inflow. 
D) Salary is a cash inflow.

Question 3

A good example of a personal financial goal would be planning to purchase a home one day.

Accepted Answer

A) True 
 B)False

Question 4

Your financial plan should include a plan for protecting your assets and income through insurance coverage.

Accepted Answer

A) True 
 B)False

Question 5

The Financial Planning Standards Council (FPSC)sets out the steps needed to earn the Certified Financial Planner (CFP)designation.

Accepted Answer

A) True 
 B)False

Question 6

The savings for a short-term goal will usually earn more interest than long-term investments such as in a retirement plan.

Accepted Answer

A) True 
 B)False

Question 7

Death and disability are examples of controllable events in financial planning.

Accepted Answer

A) True 
 B)False

Question 8

If prepared properly,financial plans are set for life and will only need minor adjustments each year.

Accepted Answer

A) True 
 B)False

Question 9

As long as you stay within your budget of spending $100 per month on eating out,there is no opportunity cost.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would be classified as a medium-term goal?

Accepted Answer

A) Saving a down payment to purchasing a house in three years 
B) Buying new clothes to begin school this month 
C) Retiring in 10 years 
D) Paying for your two-year-old child's college education 
A) Saving a down payment to purchasing a house in three years 
B) Buying new clothes to begin school this month 
C) Retiring in 10 years 
D) Paying for your two-year-old child's college education

Question 11

As of 2012,Canadians were saving

Accepted Answer

A) about 3.9 percent of income received. 
B) about 17 percent of income received. 
C) about 3.3 percent of income received. 
D) about 33 percent of income received. 
A) about 3.9 percent of income received. 
B) about 17 percent of income received. 
C) about 3.3 percent of income received. 
D) about 33 percent of income received.

Question 12

Alan has been thinking about his future and is figuring out what his biggest priorities are.At what stage of the planning process is he?

Accepted Answer

A) Selecting and implementing the best plan 
B) Determining financial goals 
C) Assessing his current financial position 
D) Identifying alternative plans to meet goals 
A) Selecting and implementing the best plan 
B) Determining financial goals 
C) Assessing his current financial position 
D) Identifying alternative plans to meet goals

Question 13

Your net worth will be increased by which of the following actions?

Accepted Answer

A) Changing your savings from 15 percent to 10 percent of your earnings 
B) Investing a $500 birthday present from your grandmother 
C) Buying a new stereo system and putting the entire amount on your credit card 
D) Purchasing a lottery ticket 
A) Changing your savings from 15 percent to 10 percent of your earnings 
B) Investing a $500 birthday present from your grandmother 
C) Buying a new stereo system and putting the entire amount on your credit card 
D) Purchasing a lottery ticket

Question 14

Which of the following is a decision that you would make during estate planning?

Accepted Answer

A) How you will minimize taxation and probate 
B) How much money you should allocate to retirement plans 
C) How your wealth will be distributed before and after your death 
D) How to enhance your net worth 
A) How you will minimize taxation and probate 
B) How much money you should allocate to retirement plans 
C) How your wealth will be distributed before and after your death 
D) How to enhance your net worth

Question 15

Planning to pay off a car loan in three years' time is classified as

Accepted Answer

A) investment planning. 
B) increasing cash flow. 
C) a medium-term goal. 
D) a short-term goal. 
A) investment planning. 
B) increasing cash flow. 
C) a medium-term goal. 
D) a short-term goal.

Question 16

Sharon had a net worth at the beginning of the year of $22 000 and she saved $1000,earning 3 percent for one year.During the year she saved $50 each week from her pay cheque in a no-interest chequing account.How much is her net worth at the end of the year?

Accepted Answer

A) $25 000 
B) $25 630 
C) $25 600 
D) $23 030 
A) $25 000 
B) $25 630 
C) $25 600 
D) $23 030

Question 17

Alayne is preparing her budget for the first time.At what stage of the financial planning process is she?

Accepted Answer

A) Establishing financial goals 
B) Managing her financial resources 
C) Budgeting and tax planning 
D) Considering her current financial situation 
A) Establishing financial goals 
B) Managing her financial resources 
C) Budgeting and tax planning 
D) Considering her current financial situation

Question 18

Retirement planning should take place

Accepted Answer

A) when you retire. 
B) shortly before you retire. 
C) well before you retire. 
D) the day you start your first job. 
A) when you retire. 
B) shortly before you retire. 
C) well before you retire. 
D) the day you start your first job.

Question 19

Credit should be used only when necessary,since it involves borrowed funds that you will need to pay back with interest.

Accepted Answer

A) True 
 B)False

Question 20

Using a credit card to cover an unexpected expense is an example of using an emergency fund.

Accepted Answer

A) True 
 B)False

Write out three goals in SMART format.

Regarding cash flow,which of the following is not correct?

A good example of a personal financial goal would be planning to purchase a home one day.

Your financial plan should include a plan for protecting your assets and income through insurance coverage.

The Financial Planning Standards Council (FPSC)sets out the steps needed to earn the Certified Financial Planner (CFP)designation.

The savings for a short-term goal will usually earn more interest than long-term investments such as in a retirement plan.

Death and disability are examples of controllable events in financial planning.

If prepared properly,financial plans are set for life and will only need minor adjustments each year.

As long as you stay within your budget of spending $100 per month on eating out,there is no opportunity cost.

Which of the following would be classified as a medium-term goal?

As of 2012,Canadians were saving

Alan has been thinking about his future and is figuring out what his biggest priorities are.At what stage of the planning process is he?

Your net worth will be increased by which of the following actions?

Which of the following is a decision that you would make during estate planning?

Planning to pay off a car loan in three years' time is classified as

Sharon had a net worth at the beginning of the year of $22 000 and she saved $1000,earning 3 percent for one year.During the year she saved $50 each week from her pay cheque in a no-interest chequing account.How much is her net worth at the end of the year?

Alayne is preparing her budget for the first time.At what stage of the financial planning process is she?

Retirement planning should take place

Credit should be used only when necessary,since it involves borrowed funds that you will need to pay back with interest.

Using a credit card to cover an unexpected expense is an example of using an emergency fund.

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

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Exam 1: Overview of a Financial Plan

Write out three goals in SMART format.

Regarding cash flow,which of the following is not correct?

A good example of a personal financial goal would be planning to purchase a home one day.

Your financial plan should include a plan for protecting your assets and income through insurance coverage.

The Financial Planning Standards Council (FPSC)sets out the steps needed to earn the Certified Financial Planner (CFP)designation.

The savings for a short-term goal will usually earn more interest than long-term investments such as in a retirement plan.

Death and disability are examples of controllable events in financial planning.

If prepared properly,financial plans are set for life and will only need minor adjustments each year.

As long as you stay within your budget of spending $100 per month on eating out,there is no opportunity cost.

Which of the following would be classified as a medium-term goal?

As of 2012,Canadians were saving

Alan has been thinking about his future and is figuring out what his biggest priorities are.At what stage of the planning process is he?

Your net worth will be increased by which of the following actions?

Which of the following is a decision that you would make during estate planning?

Planning to pay off a car loan in three years' time is classified as

Sharon had a net worth at the beginning of the year of $22 000 and she saved $1000,earning 3 percent for one year.During the year she saved $50 each week from her pay cheque in a no-interest chequing account.How much is her net worth at the end of the year?

Alayne is preparing her budget for the first time.At what stage of the financial planning process is she?

Retirement planning should take place

Credit should be used only when necessary,since it involves borrowed funds that you will need to pay back with interest.

Using a credit card to cover an unexpected expense is an example of using an emergency fund.

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