Question 1

Property and casualty insurance protects your

Accepted Answer

A) home and family. 
B) car and home. 
C) home and health. 
D) home and income. 
A) home and family. 
B) car and home. 
C) home and health. 
D) home and income.

Question 2

To budget for savings or retirement,you need positive cash flows.

Accepted Answer

A) True 
 B)False

Question 3

In deciding how much to contribute to your retirement savings,which of the following should you ignore?

Accepted Answer

A) Anticipated inheritances 
B) Other financial goals 
C) Liquidity needs 
D) Current expenses 
A) Anticipated inheritances 
B) Other financial goals 
C) Liquidity needs 
D) Current expenses

Question 4

You do not need insurance for events which are unlikely to happen.

Accepted Answer

A) True 
 B)False

Question 5

Budgeting allows you to forecast how much money you will have at the end of each month so you can determine how much you will be able to invest in assets.

Accepted Answer

A) True 
 B)False

Question 6

Once someone is deemed incompetent,the only way you can make arrangements to look after their financial decisions is to complete a durable power of attorney.

Accepted Answer

A) True 
 B)False

Question 7

Trust agreements in financial plans are normally are used for

Accepted Answer

A) wills. 
B) powers of attorney. 
C) financial security. 
D) estate planning. 
A) wills. 
B) powers of attorney. 
C) financial security. 
D) estate planning.

Question 8

What are four types of financial investment accounts and indicate the likely purposes they would have in your financial plan?

Accepted Answer

They should not list a regular savings o

Question 9

Which of the following investments reduces your taxable income?

Accepted Answer

A) Stock investments 
B) RRSP contributions 
C) RESP contributions 
D) TFSA contributions 
A) Stock investments 
B) RRSP contributions 
C) RESP contributions 
D) TFSA contributions

Question 10

Key documents for managing personal financing include

Accepted Answer

A) pension statements. 
B) retirement account balances. 
C) personal loans,such as automobile loans. 
D) Canada Pension Plan calculations. 
A) pension statements. 
B) retirement account balances. 
C) personal loans,such as automobile loans. 
D) Canada Pension Plan calculations.

Question 11

Personal financing

Accepted Answer

A) allows you to make grocery purchases with your credit card. 
B) increases your assets overall. 
C) enables you to make large purchases. 
D) helps increase your ability to save. 
A) allows you to make grocery purchases with your credit card. 
B) increases your assets overall. 
C) enables you to make large purchases. 
D) helps increase your ability to save.

Question 12

Which of the following increases your net worth?

Accepted Answer

A) Increasing your retirement savings 
B) Starting a pension plan 
C) Cashing in an investment to pay off a loan 
D) Purchasing a new car 
A) Increasing your retirement savings 
B) Starting a pension plan 
C) Cashing in an investment to pay off a loan 
D) Purchasing a new car

Question 13

An example of compounding is

Accepted Answer

A) buying stocks that do not pay dividends. 
B) buying a strip bond. 
C) using dividends to pay your cell phone bill. 
D) reinvesting dividends to purchase more units. 
A) buying stocks that do not pay dividends. 
B) buying a strip bond. 
C) using dividends to pay your cell phone bill. 
D) reinvesting dividends to purchase more units.

Question 14

Which of the following statements about insurance is True?

Accepted Answer

A) The most important things to insure are your fixed assets. 
B) Money used to buy insurance is wasted because you cannot invest it. 
C) You cannot have too much insurance. 
D) It should be given priority before you start investing. 
A) The most important things to insure are your fixed assets. 
B) Money used to buy insurance is wasted because you cannot invest it. 
C) You cannot have too much insurance. 
D) It should be given priority before you start investing.

Question 15

The purpose of insurance is to protect your

Accepted Answer

A) liabilities and expenses. 
B) assets and liabilities. 
C) assets and net worth. 
D) income and expenses. 
A) liabilities and expenses. 
B) assets and liabilities. 
C) assets and net worth. 
D) income and expenses.

Question 16

Some large well-known firms pay no dividends,but most do.

Accepted Answer

A) True 
 B)False

Question 17

A disadvantage of paying off your mortgage with all your remaining liquid funds is that

Accepted Answer

A) you likely make higher interest with your liquid funds. 
B) you could incur an unanticipated expense you cannot pay. 
C) you might not be able to qualify for another loan. 
D) early repayment could damage your credit rating. 
A) you likely make higher interest with your liquid funds. 
B) you could incur an unanticipated expense you cannot pay. 
C) you might not be able to qualify for another loan. 
D) early repayment could damage your credit rating.

Question 18

Which of the following cannot be protected by property and casualty insurance?

Accepted Answer

A) Your car 
B) Your income 
C) Your home 
D) Your furniture 
A) Your car 
B) Your income 
C) Your home 
D) Your furniture

Question 19

Disability insurance protects your

Accepted Answer

A) lifestyle. 
B) income. 
C) health. 
D) assets. 
A) lifestyle. 
B) income. 
C) health. 
D) assets.

Question 20

Key documents for managing investments include

Accepted Answer

A) defined-benefit plan statements. 
B) account balances showing the market values of holdings. 
C) insurance policies. 
D) health insurance certificates. 
A) defined-benefit plan statements. 
B) account balances showing the market values of holdings. 
C) insurance policies. 
D) health insurance certificates.

Property and casualty insurance protects your

To budget for savings or retirement,you need positive cash flows.

In deciding how much to contribute to your retirement savings,which of the following should you ignore?

You do not need insurance for events which are unlikely to happen.

Budgeting allows you to forecast how much money you will have at the end of each month so you can determine how much you will be able to invest in assets.

Once someone is deemed incompetent,the only way you can make arrangements to look after their financial decisions is to complete a durable power of attorney.

Trust agreements in financial plans are normally are used for

What are four types of financial investment accounts and indicate the likely purposes they would have in your financial plan?

Which of the following investments reduces your taxable income?

Key documents for managing personal financing include

Personal financing

Which of the following increases your net worth?

An example of compounding is

Which of the following statements about insurance is True?

The purpose of insurance is to protect your

Some large well-known firms pay no dividends,but most do.

A disadvantage of paying off your mortgage with all your remaining liquid funds is that

Which of the following cannot be protected by property and casualty insurance?

Disability insurance protects your

Key documents for managing investments include

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

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

Property and casualty insurance protects your

To budget for savings or retirement,you need positive cash flows.

In deciding how much to contribute to your retirement savings,which of the following should you ignore?

You do not need insurance for events which are unlikely to happen.

Budgeting allows you to forecast how much money you will have at the end of each month so you can determine how much you will be able to invest in assets.

Once someone is deemed incompetent,the only way you can make arrangements to look after their financial decisions is to complete a durable power of attorney.

Trust agreements in financial plans are normally are used for

What are four types of financial investment accounts and indicate the likely purposes they would have in your financial plan?

Which of the following investments reduces your taxable income?

Key documents for managing personal financing include

Personal financing

Which of the following increases your net worth?

An example of compounding is

Which of the following statements about insurance is True?

The purpose of insurance is to protect your

Some large well-known firms pay no dividends,but most do.

A disadvantage of paying off your mortgage with all your remaining liquid funds is that

Which of the following cannot be protected by property and casualty insurance?

Disability insurance protects your

Key documents for managing investments include

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