Question 1

Which of the following is a key to establishing a sizable savings balance?

Accepted Answer

A)  invest all money earned in the stock market 
B)  automatically deposit a percentage of each paycheque into a savings account 
C)  pay the minimum on each credit card bill 
D)  use online savings banks, since they typically pay higher rates of interest 
A)  invest all money earned in the stock market 
B)  automatically deposit a percentage of each paycheque into a savings account 
C)  pay the minimum on each credit card bill 
D)  use online savings banks, since they typically pay higher rates of interest B

Question 2

When you contribute to an RRSP you reduce your taxable income.

Accepted Answer

A) True 
 B)False  True

Question 3

A government bond is a government security that matures in greater than four years.

Accepted Answer

A) True 
 B)False  False

Question 4

A tax-free savings account contribution is tax deductible.

Accepted Answer

A) True 
 B)False

Question 5

What should you analyze as the first step to developing a budget?

Accepted Answer

A)  current interest rates 
B)  revenues and expenses 
C)  how you stand compared to others your age 
D)  credit card receipts 
A)  current interest rates 
B)  revenues and expenses 
C)  how you stand compared to others your age 
D)  credit card receipts

Question 6

Bernie is concerned about his current financial condition. What do you suggest he do in order to get a handle on his finances?

Accepted Answer

A)  apply for a credit card 
B)  only purchase items that are on sale 
C)  ask his rich uncle for a short-term loan 
D)  develop a budget 
A)  apply for a credit card 
B)  only purchase items that are on sale 
C)  ask his rich uncle for a short-term loan 
D)  develop a budget

Question 7

An RRSP contribution is not tax deductible.

Accepted Answer

A) True 
 B)False

Question 8

All experts agree that credit cards are dangerous and should be avoided at all costs.

Accepted Answer

A) True 
 B)False

Question 9

You recently had a conversation with your neighbour Ruth Ripoff about her problems with getting a loan. She mentioned, in the course of the conversation, that she had been turned down at least five times. Based on this information, what can you conclude about your neighbour?

Accepted Answer

A)  Her credit history is neither positive or negative. 
B)  She has either high credit balances or unpaid credit. 
C)  She has not tried hard enough to secure a loan. 
D)  She has an excellent credit history. 
A)  Her credit history is neither positive or negative. 
B)  She has either high credit balances or unpaid credit. 
C)  She has not tried hard enough to secure a loan. 
D)  She has an excellent credit history.

Question 10

Recently your Aunt Gertie asked you about investing $10000. During the course of your conversation she mentioned that she was looking for a maximum level of safety. Based on this information, you should suggest she invest the $10000 in corporate stock.

Accepted Answer

A) True 
 B)False

Question 11

What is the first rule when you have credit card difficulties?

Accepted Answer

A)  Put the card down. 
B)  Slow down the rate of credit purchases. 
C)  Stop using the card for essential items. 
D)  Avoid shopping malls. 
A)  Put the card down. 
B)  Slow down the rate of credit purchases. 
C)  Stop using the card for essential items. 
D)  Avoid shopping malls.

Question 12

What do we call a summary of open and closed credit accounts and the manner in which those accounts have been paid?

Accepted Answer

A)  a financial report 
B)  a credit summary 
C)  a credit history 
D)  a history of credit 
A)  a financial report 
B)  a credit summary 
C)  a credit history 
D)  a history of credit

Question 13

Most financial experts believe one key to financial security is the establishment of a "safety net." What amount should you keep in this "safety net" or savings account?

Accepted Answer

A)  only the minimum, since this type of account is not FDIC insured 
B)  3 to 6 weeks of your salary 
C)  3 to 6 months of monthly expenses 
D)  just enough money to pay next month's bills 
A)  only the minimum, since this type of account is not FDIC insured 
B)  3 to 6 weeks of your salary 
C)  3 to 6 months of monthly expenses 
D)  just enough money to pay next month's bills

Question 14

What do we call a detailed schedule that documents expected financial inflows and outflows in order to determine your net inflow or outflow?

Accepted Answer

A)  a discretionary forecast 
B)  a dividend 
C)  a budget 
D)  a credit history 
A)  a discretionary forecast 
B)  a dividend 
C)  a budget 
D)  a credit history

Question 15

Credit history is the study of financial markets and their impact on interest rates.

Accepted Answer

A) True 
 B)False

Question 16

A debit card allows you to make "cash-like" purchases, because your bank balance is reduced immediately each time your card is used.

Accepted Answer

A) True 
 B)False

Question 17

You recently purchased 100 shares of Sand Box Software. One benefit of buying and owning these shares is that you are entitled to receive quarterly dividends.

Accepted Answer

A) True 
 B)False

Question 18

When you go to school and work you may have to spend a significant amount of money on gas and car maintenance every month. With some creativity and flexibility you may find that some of these costs are not completely non-discretionary.

Accepted Answer

A) True 
 B)False

Question 19

A debit card takes three days before it removes the money from your bank account.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following are IOUs issued by corporations that entitle investors to receive interest payments?

Accepted Answer

A)  mutual funds 
B)  government bonds 
C)  T-bills 
D)  corporate bonds 
A)  mutual funds 
B)  government bonds 
C)  T-bills 
D)  corporate bonds

Which of the following is a key to establishing a sizable savings balance?

When you contribute to an RRSP you reduce your taxable income.

A government bond is a government security that matures in greater than four years.

A tax-free savings account contribution is tax deductible.

What should you analyze as the first step to developing a budget?

Bernie is concerned about his current financial condition. What do you suggest he do in order to get a handle on his finances?

An RRSP contribution is not tax deductible.

All experts agree that credit cards are dangerous and should be avoided at all costs.

You recently had a conversation with your neighbour Ruth Ripoff about her problems with getting a loan. She mentioned, in the course of the conversation, that she had been turned down at least five times. Based on this information, what can you conclude about your neighbour?

Recently your Aunt Gertie asked you about investing $10000. During the course of your conversation she mentioned that she was looking for a maximum level of safety. Based on this information, you should suggest she invest the $10000 in corporate stock.

What is the first rule when you have credit card difficulties?

What do we call a summary of open and closed credit accounts and the manner in which those accounts have been paid?

Most financial experts believe one key to financial security is the establishment of a "safety net." What amount should you keep in this "safety net" or savings account?

What do we call a detailed schedule that documents expected financial inflows and outflows in order to determine your net inflow or outflow?

Credit history is the study of financial markets and their impact on interest rates.

A debit card allows you to make "cash-like" purchases, because your bank balance is reduced immediately each time your card is used.

You recently purchased 100 shares of Sand Box Software. One benefit of buying and owning these shares is that you are entitled to receive quarterly dividends.

When you go to school and work you may have to spend a significant amount of money on gas and car maintenance every month. With some creativity and flexibility you may find that some of these costs are not completely non-discretionary.

A debit card takes three days before it removes the money from your bank account.

Which of the following are IOUs issued by corporations that entitle investors to receive interest payments?

Business Now: Change Is the Only Constant

Business Ethics and Social Responsibility: Doing Well by Doing Good

Economics: The Framework for Business

The World Market-Place: Business Without Borders

Business Formation: Choosing the Form That Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation, and Leadership: Bringing Business to Life

Human Resource Management: Building a Top-Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Business Communication: Creating and Delivering Messages That Matter

Labour Unions and Collective Bargaining

Business Law

Filters

Exam 20: Personal Finance

Which of the following is a key to establishing a sizable savings balance?

When you contribute to an RRSP you reduce your taxable income.

A government bond is a government security that matures in greater than four years.

A tax-free savings account contribution is tax deductible.

What should you analyze as the first step to developing a budget?

Bernie is concerned about his current financial condition. What do you suggest he do in order to get a handle on his finances?

An RRSP contribution is not tax deductible.

All experts agree that credit cards are dangerous and should be avoided at all costs.

You recently had a conversation with your neighbour Ruth Ripoff about her problems with getting a loan. She mentioned, in the course of the conversation, that she had been turned down at least five times. Based on this information, what can you conclude about your neighbour?

Recently your Aunt Gertie asked you about investing $10000. During the course of your conversation she mentioned that she was looking for a maximum level of safety. Based on this information, you should suggest she invest the $10000 in corporate stock.

What is the first rule when you have credit card difficulties?

What do we call a summary of open and closed credit accounts and the manner in which those accounts have been paid?

Most financial experts believe one key to financial security is the establishment of a "safety net." What amount should you keep in this "safety net" or savings account?

What do we call a detailed schedule that documents expected financial inflows and outflows in order to determine your net inflow or outflow?

Credit history is the study of financial markets and their impact on interest rates.

A debit card allows you to make "cash-like" purchases, because your bank balance is reduced immediately each time your card is used.

You recently purchased 100 shares of Sand Box Software. One benefit of buying and owning these shares is that you are entitled to receive quarterly dividends.

When you go to school and work you may have to spend a significant amount of money on gas and car maintenance every month. With some creativity and flexibility you may find that some of these costs are not completely non-discretionary.

A debit card takes three days before it removes the money from your bank account.

Which of the following are IOUs issued by corporations that entitle investors to receive interest payments?

Business Now: Change Is the Only Constant

Business Ethics and Social Responsibility: Doing Well by Doing Good

Economics: The Framework for Business

The World Market-Place: Business Without Borders

Business Formation: Choosing the Form That Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation, and Leadership: Bringing Business to Life

Human Resource Management: Building a Top-Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Business Communication: Creating and Delivering Messages That Matter

Labour Unions and Collective Bargaining

Business Law

Filters