Question 1

Which of the following is not a business periodical?

Accepted Answer

A) Report on Business 
B) BusinessWeek 
C) The Economist 
D) Canadian Banker 
E) Canadian Business 
A) Report on Business 
B) BusinessWeek 
C) The Economist 
D) Canadian Banker 
E) Canadian Business

Question 2

Earnings that are reinvested in a corporation are called

Accepted Answer

A) retained earnings. 
B) surplus earnings. 
C) retention capital. 
D) additional capital. 
E) collected capital. 
A) retained earnings. 
B) surplus earnings. 
C) retention capital. 
D) additional capital. 
E) collected capital.

Question 3

What is step 2 of the steps for effective investment planning?

Accepted Answer

A) Determine the amount of money you need to obtain your goals. 
B) Specify the amount of money you currently have available to fund your investments. 
C) List different investments that you want to evaluate. 
D) Reduce possible investments to a reasonable number. 
E) Choose at least two different investments. 
A) Determine the amount of money you need to obtain your goals. 
B) Specify the amount of money you currently have available to fund your investments. 
C) List different investments that you want to evaluate. 
D) Reduce possible investments to a reasonable number. 
E) Choose at least two different investments.

Question 4

Your investment suddenly goes down 15 percent one month after you invest.Its fundamentals still look good.What would you do if you were a very risk tolerant investor?

Accepted Answer

A) Hold on and wait for it to come back. 
B) Buy more.If it looked good at the original price, it looks even better now 
C) Sell it to avoid losing even more 
D) Sell and then buy if it goes down again 
E) Sell and buy GICs 
A) Hold on and wait for it to come back. 
B) Buy more.If it looked good at the original price, it looks even better now 
C) Sell it to avoid losing even more 
D) Sell and then buy if it goes down again 
E) Sell and buy GICs

Question 5

When investing in global investments, changes in the currency exchange rate may affect the return on your investment.

Accepted Answer

A) True 
 B)False

Question 6

What is step 6 of the steps for effective investment planning?

Accepted Answer

A) Determine the amount of money you need to obtain your goals. 
B) Specify the amount of money you currently have available to fund your investments. 
C) List different investments that you want to evaluate. 
D) Reduce possible investments to a reasonable number. 
E) Choose at least two different investments. 
A) Determine the amount of money you need to obtain your goals. 
B) Specify the amount of money you currently have available to fund your investments. 
C) List different investments that you want to evaluate. 
D) Reduce possible investments to a reasonable number. 
E) Choose at least two different investments.

Question 7

Chi Min-Ho is 24 and has saved enough money to fund an adequate emergency fund.In addition, he has saved $5,600 that can be used to fund an investment program.He is single, has no dependents, and would like to retire when he is 60.Which of the investment factors listed below would be most important for an investor like Mr.Min-Ho?

Accepted Answer

A) beta 
B) income 
C) growth 
D) risk 
E) liquidity 
A) beta 
B) income 
C) growth 
D) risk 
E) liquidity

Question 8

What is the dividend tax credit rate, as per the publication?

Accepted Answer

A) 5.5% 
B) 10.5% 
C) 14.5% 
D) 21.25% 
E) 9.75% 
A) 5.5% 
B) 10.5% 
C) 14.5% 
D) 21.25% 
E) 9.75%

Question 9

All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:

Accepted Answer

A) Learn to live within your means. 
B) Increase credit purchases and make installment payments in order to increase cash available for investing. 
C) Provide adequate insurance protection. 
D) Start an emergency fund. 
E) Establish a line of credit. 
A) Learn to live within your means. 
B) Increase credit purchases and make installment payments in order to increase cash available for investing. 
C) Provide adequate insurance protection. 
D) Start an emergency fund. 
E) Establish a line of credit.

Question 10

Which of the following is not a true statement?

Accepted Answer

A) Real estate ownership represents one of the best hedges against inflation. 
B) Poor location can cause a piece of real estate property to go down in value. 
C) There are many factors to consider before investing in real estate. 
D) There is no reason to evaluate a real estate investment because real estate always increases in value sooner or later. 
E) Finding a buyer for a piece of real estate can be difficult if loan money is scarce. 
A) Real estate ownership represents one of the best hedges against inflation. 
B) Poor location can cause a piece of real estate property to go down in value. 
C) There are many factors to consider before investing in real estate. 
D) There is no reason to evaluate a real estate investment because real estate always increases in value sooner or later. 
E) Finding a buyer for a piece of real estate can be difficult if loan money is scarce.

Question 11

If interest rates in the overall economy decrease, what will happen to the market value of a corporate bond with a fixed interest rate?

Accepted Answer

A) The value of the bond will increase. 
B) The bond is worthless. 
C) The value of the bond will decrease. 
D) The value of the bond will not change. 
E) It is impossible to determine if the bond's value will increase or decrease. 
A) The value of the bond will increase. 
B) The bond is worthless. 
C) The value of the bond will decrease. 
D) The value of the bond will not change. 
E) It is impossible to determine if the bond's value will increase or decrease.

Question 12

Bad products or poor financial management may result in investors experiencing ____________ risk.

Accepted Answer

A) business failure 
B) interest rate 
C) inflation. 
D) market 
E) income 
A) business failure 
B) interest rate 
C) inflation. 
D) market 
E) income

Question 13

The belief that something must be of superior value because we own it, is known as the endowment effect.

Accepted Answer

A) True 
 B)False

Question 14

An investment alternative in the form of an annuity that is similar to a mutual fund but that is less risky as it provides a certain degree of insurance to the investor is a (an) __________

Accepted Answer

A) segregated fund. 
B) government bond. 
C) guaranteed investment certificate. 
D) government stock. 
E) option fund. 
A) segregated fund. 
B) government bond. 
C) guaranteed investment certificate. 
D) government stock. 
E) option fund.

Question 15

Which of the following is not a true statement?

Accepted Answer

A) Dividends are a distribution of money, stock, or other property to stockholders. 
B) Dividend income must be reported to the CCRA. 
C) Dividends are taxed as capital gains. 
D) Dividends are not taxed as ordinary income. 
E) Generally, the payer will send you or your broker a form that states how much dividend income you have received. 
A) Dividends are a distribution of money, stock, or other property to stockholders. 
B) Dividend income must be reported to the CCRA. 
C) Dividends are taxed as capital gains. 
D) Dividends are not taxed as ordinary income. 
E) Generally, the payer will send you or your broker a form that states how much dividend income you have received.

Question 16

Potential investors should wait until they put their financial affairs in order before starting to invest.

Accepted Answer

A) True 
 B)False

Question 17

A long-term objective may take up to three years to accomplish.

Accepted Answer

A) True 
 B)False

Question 18

Capital gains and capital losses

Accepted Answer

A) are not fully taxed. 
B) are subject to higher taxes than is income. 
C) are assets held for longer than two years. 
D) are assets held for longer than five years. 
E) are assets held for longer than ten years. 
A) are not fully taxed. 
B) are subject to higher taxes than is income. 
C) are assets held for longer than two years. 
D) are assets held for longer than five years. 
E) are assets held for longer than ten years.

Question 19

Generally, options are not long-term investment techniques.

Accepted Answer

A) True 
 B)False

Question 20

What rate of interest was earned for $2,000 to accumulate to be $226,560 after 30 years?

Accepted Answer

A) 4% 
B) 5% 
C) 6% 
D) 7% 
E) 8% 
A) 4% 
B) 5% 
C) 6% 
D) 7% 
E) 8%

Which of the following is not a business periodical?

Earnings that are reinvested in a corporation are called

What is step 2 of the steps for effective investment planning?

Your investment suddenly goes down 15 percent one month after you invest.Its fundamentals still look good.What would you do if you were a very risk tolerant investor?

When investing in global investments, changes in the currency exchange rate may affect the return on your investment.

What is step 6 of the steps for effective investment planning?

What is the dividend tax credit rate, as per the publication?

All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:

Which of the following is not a true statement?

If interest rates in the overall economy decrease, what will happen to the market value of a corporate bond with a fixed interest rate?

Bad products or poor financial management may result in investors experiencing ____________ risk.

The belief that something must be of superior value because we own it, is known as the endowment effect.

An investment alternative in the form of an annuity that is similar to a mutual fund but that is less risky as it provides a certain degree of insurance to the investor is a (an) __________

Which of the following is not a true statement?

Potential investors should wait until they put their financial affairs in order before starting to invest.

A long-term objective may take up to three years to accomplish.

Capital gains and capital losses

Generally, options are not long-term investment techniques.

What rate of interest was earned for $2,000 to accumulate to be $226,560 after 30 years?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 10: Fundamentals of Investing

Which of the following is not a business periodical?

Earnings that are reinvested in a corporation are called

What is step 2 of the steps for effective investment planning?

Your investment suddenly goes down 15 percent one month after you invest.Its fundamentals still look good.What would you do if you were a very risk tolerant investor?

When investing in global investments, changes in the currency exchange rate may affect the return on your investment.

What is step 6 of the steps for effective investment planning?

What is the dividend tax credit rate, as per the publication?

All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:

Which of the following is not a true statement?

If interest rates in the overall economy decrease, what will happen to the market value of a corporate bond with a fixed interest rate?

Bad products or poor financial management may result in investors experiencing ____________ risk.

The belief that something must be of superior value because we own it, is known as the endowment effect.

An investment alternative in the form of an annuity that is similar to a mutual fund but that is less risky as it provides a certain degree of insurance to the investor is a (an) __________

Which of the following is not a true statement?

Potential investors should wait until they put their financial affairs in order before starting to invest.

A long-term objective may take up to three years to accomplish.

Capital gains and capital losses

Generally, options are not long-term investment techniques.

What rate of interest was earned for $2,000 to accumulate to be $226,560 after 30 years?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters