Question 1

List three types of financing you have studied and an important consideration about each one of them

Accepted Answer

interest rate much lower than for credit cards and term,fixed payments over the term
 Line of credit/HELOC: revolving credit,interest rate,flexibility for borrowing and payment terms
 Mortgages: generally lower interest rates,variable rates usually lower than fixed rates,benefits of amortizing over less than 20 years.

Question 2

Even though insurance costs reduce your cash flow,insurance could have a larger impact on your net worth than its cost.

Accepted Answer

A) True 
 B)False  True

Question 3

You must have assets to be able to access financing for large purchases.

Accepted Answer

A) True 
 B)False  False

Question 4

Discuss how financial planning principles will help you solve the following challenges.
a)Getting married sooner than expected
b)Starting a family
c)Having a high-paid job that causes ongoing stress
d)Having to change careers

Accepted Answer

Very broad answers would be expected for

Question 5

Financing may be good for obtaining assets right away but also may end up restricting your cash flow to save for other goals.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following will decrease your net worth?

Accepted Answer

A) Increase your income 
B) Decrease your expenses 
C) Increase your assets 
D) Increase your liabilities 
A) Increase your income 
B) Decrease your expenses 
C) Increase your assets 
D) Increase your liabilities

Question 7

You should make investments only after you have sufficient liquidity and sufficient insurance to protect your existing assets.

Accepted Answer

A) True 
 B)False

Question 8

It is easier to cover monthly loan payments if you select financing with

Accepted Answer

A) a relatively long term. 
B) a relatively short term. 
C) a fixed interest rate. 
D) a high interest rate. 
A) a relatively long term. 
B) a relatively short term. 
C) a fixed interest rate. 
D) a high interest rate.

Question 9

You are 25 years old and saving for an early retirement.Assuming that you have a high risk tolerance,which of the following can best help you reach your goal of retiring early?

Accepted Answer

A) A bond fund 
B) A money market fund 
C) A growth fund 
D) A dividend fund 
A) A bond fund 
B) A money market fund 
C) A growth fund 
D) A dividend fund

Question 10

It would be advisable to make additional loan payments if the interest rate is eight percent,rather than investing in short-term interest-bearing securities offering four percent.

Accepted Answer

A) True 
 B)False

Question 11

Normally,you should use all of your liquid assets to pay off your loan.

Accepted Answer

A) True 
 B)False

Question 12

If you want to use funds from your RRSP for furthering your education,the Lifelong Learning plan is the only way to get at that money without paying full tax on it.

Accepted Answer

A) True 
 B)False

Question 13

Regularly reviewing your financial plan is the only way to make sure that all of its components are properly integrated to meet your goals.

Accepted Answer

A) True 
 B)False

Question 14

Even average earners can accumulate wealth by

Accepted Answer

A) spending less than they make. 
B) saving more than they make. 
C) borrowing to buy what they want. 
D) winning the lottery. 
A) spending less than they make. 
B) saving more than they make. 
C) borrowing to buy what they want. 
D) winning the lottery.

Question 15

Liability insurance provides your beneficiaries with financial support in the event of your death.

Accepted Answer

A) True 
 B)False

Question 16

An important consideration regarding applying for a loan is that

Accepted Answer

A) you may not have a good credit rating unless you have borrowed before. 
B) it would be better to simply increase your credit card limit than take out a loan. 
C) a longer term is preferred because of the smaller payments. 
D) it lets you purchase items now,rather than later,without affecting your budget. 
A) you may not have a good credit rating unless you have borrowed before. 
B) it would be better to simply increase your credit card limit than take out a loan. 
C) a longer term is preferred because of the smaller payments. 
D) it lets you purchase items now,rather than later,without affecting your budget.

Question 17

Revising a financial plan

Accepted Answer

A) should only be done in extreme circumstances. 
B) may include changing your goals. 
C) does not have to be done when you have more cash flow than needed. 
D) is not necessary once you retire. 
A) should only be done in extreme circumstances. 
B) may include changing your goals. 
C) does not have to be done when you have more cash flow than needed. 
D) is not necessary once you retire.

Question 18

A financial plan should be prepared when you graduate from college or university

Accepted Answer

A) and carefully followed thereafter without changes. 
B) and carefully followed until you retire,when you will no longer need one. 
C) and reviewed and adjusted periodically as events such as marriage,job changes,birth of children,and retirement necessitate. 
D) as a rough outline,as it will change too often to make anything more detailed feasible. 
A) and carefully followed thereafter without changes. 
B) and carefully followed until you retire,when you will no longer need one. 
C) and reviewed and adjusted periodically as events such as marriage,job changes,birth of children,and retirement necessitate. 
D) as a rough outline,as it will change too often to make anything more detailed feasible.

Question 19

If you want investment income,which of the following investments should you purchase?

Accepted Answer

A) Bonds and dividend producing equities 
B) Stocks with high betas 
C) Growth mutual funds 
D) IPOs 
A) Bonds and dividend producing equities 
B) Stocks with high betas 
C) Growth mutual funds 
D) IPOs

Question 20

Which of the following is True?

Accepted Answer

A) You should use all your liquid assets to pay off loans when the return on the investments is high. 
B) Paying off loans is appropriate when the loan interest rate is high and you have enough liquidity. 
C) Paying off loans is wise whenever the loan rate is lower than what you expect to earn on investments. 
D) Loan payments will not restrict your cash flow but may prevent you from achieving financial goals. 
A) You should use all your liquid assets to pay off loans when the return on the investments is high. 
B) Paying off loans is appropriate when the loan interest rate is high and you have enough liquidity. 
C) Paying off loans is wise whenever the loan rate is lower than what you expect to earn on investments. 
D) Loan payments will not restrict your cash flow but may prevent you from achieving financial goals.

List three types of financing you have studied and an important consideration about each one of them

Even though insurance costs reduce your cash flow,insurance could have a larger impact on your net worth than its cost.

You must have assets to be able to access financing for large purchases.

Discuss how financial planning principles will help you solve the following challenges. a)Getting married sooner than expected b)Starting a family c)Having a high-paid job that causes ongoing stress d)Having to change careers

Financing may be good for obtaining assets right away but also may end up restricting your cash flow to save for other goals.

Which of the following will decrease your net worth?

You should make investments only after you have sufficient liquidity and sufficient insurance to protect your existing assets.

It is easier to cover monthly loan payments if you select financing with

You are 25 years old and saving for an early retirement.Assuming that you have a high risk tolerance,which of the following can best help you reach your goal of retiring early?

It would be advisable to make additional loan payments if the interest rate is eight percent,rather than investing in short-term interest-bearing securities offering four percent.

Normally,you should use all of your liquid assets to pay off your loan.

If you want to use funds from your RRSP for furthering your education,the Lifelong Learning plan is the only way to get at that money without paying full tax on it.

Regularly reviewing your financial plan is the only way to make sure that all of its components are properly integrated to meet your goals.

Even average earners can accumulate wealth by

Liability insurance provides your beneficiaries with financial support in the event of your death.

An important consideration regarding applying for a loan is that

Revising a financial plan

A financial plan should be prepared when you graduate from college or university

If you want investment income,which of the following investments should you purchase?

Which of the following is True?

Overview of a Financial Plan

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

Filters

Exam 16: Synthesis of Financial Planning - Integrating the Components of a Financial Plan

List three types of financing you have studied and an important consideration about each one of them

Even though insurance costs reduce your cash flow,insurance could have a larger impact on your net worth than its cost.

You must have assets to be able to access financing for large purchases.

Discuss how financial planning principles will help you solve the following challenges. a)Getting married sooner than expected b)Starting a family c)Having a high-paid job that causes ongoing stress d)Having to change careers

Financing may be good for obtaining assets right away but also may end up restricting your cash flow to save for other goals.

Which of the following will decrease your net worth?

You should make investments only after you have sufficient liquidity and sufficient insurance to protect your existing assets.

It is easier to cover monthly loan payments if you select financing with

You are 25 years old and saving for an early retirement.Assuming that you have a high risk tolerance,which of the following can best help you reach your goal of retiring early?

It would be advisable to make additional loan payments if the interest rate is eight percent,rather than investing in short-term interest-bearing securities offering four percent.

Normally,you should use all of your liquid assets to pay off your loan.

If you want to use funds from your RRSP for furthering your education,the Lifelong Learning plan is the only way to get at that money without paying full tax on it.

Regularly reviewing your financial plan is the only way to make sure that all of its components are properly integrated to meet your goals.

Even average earners can accumulate wealth by

Liability insurance provides your beneficiaries with financial support in the event of your death.

An important consideration regarding applying for a loan is that

Revising a financial plan

A financial plan should be prepared when you graduate from college or university

If you want investment income,which of the following investments should you purchase?

Which of the following is True?

Overview of a Financial Plan

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

Filters