Question 1

RRSPs can contribute to net worth by making withdrawals to purchase a home.

Accepted Answer

A) True 
 B)False  True

Question 2

Personal financing

Accepted Answer

A) allows you to make grocery purchases with your credit card. 
B) increases the amount of your assets. 
C) is useful for large purchases. 
D) helps in increasing your ability to save. 
A) allows you to make grocery purchases with your credit card. 
B) increases the amount of your assets. 
C) is useful for large purchases. 
D) helps in increasing your ability to save. C

Question 3

Which of the following is not regarded as a document used for financial planning?

Accepted Answer

A) Insurance quotation 
B) Bank account balance 
C) Credit card balance 
D) Will 
A) Insurance quotation 
B) Bank account balance 
C) Credit card balance 
D) Will A

Question 4

By constantly reviewing your financial plan you will make sure that all of its components are properly integrated to meet your goals.

Accepted Answer

A) True 
 B)False

Question 5

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 6

A financial plan should be

Accepted Answer

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

Question 7

What is meant by the financing trade-off?

Accepted Answer

A) Financing is a necessary evil and people today could not live without it. 
B) Financing enables people to get what they want faster. 
C) Over extending yourself on credit can lead to bankruptcy. 
D) Borrowing is an important tool but it can cause budgeting problems. 
A) Financing is a necessary evil and people today could not live without it. 
B) Financing enables people to get what they want faster. 
C) Over extending yourself on credit can lead to bankruptcy. 
D) Borrowing is an important tool but it can cause budgeting problems.

Question 8

If you are looking for fast-growth stocks, you should look for stocks that do not pay dividends.

Accepted Answer

A) True 
 B)False

Question 9

The more money you contribute now to RRSPs and employer retirement plans, the more money you will have at retirement.

Accepted Answer

A) True 
 B)False

Question 10

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 a surprise 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 a surprise expense you cannot pay. 
C) you might not be able to qualify for another loan. 
D) early repayment could damage your credit rating.

Question 11

You should maintain just enough money in liquid assets to satisfy your liquidity needs. Then you can earn a higher return on your other assets.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

The more you spend, the less money you will have available for liquidity purposes or to make investments or to save for retirement.

Accepted Answer

A) True 
 B)False

Question 15

You are single, rent an apartment and go to school part-time and work part-time. Which of the following are you most likely to need?

Accepted Answer

A) Stockbroker 
B) Life insurance 
C) A will 
D) A budget 
A) Stockbroker 
B) Life insurance 
C) A will 
D) A budget

Question 16

List three ways to protect and maintain your wealth.

Accepted Answer

Insurance policies,

Question 17

Managing liquidity is required

Accepted Answer

A) if your budget is at a deficit. 
B) if your credit card is at the limit. 
C) if your credit is bad. 
D) if you anticipate cash shortages. 
A) if your budget is at a deficit. 
B) if your credit card is at the limit. 
C) if your credit is bad. 
D) if you anticipate cash shortages.

Question 18

One area that is difficult to understand but can be a source of unexpected cash flow is

Accepted Answer

A) exploring tax savings or tax deductions to which you are entitled. 
B) RRSP deposits, because they only withhold 10 percent of the withdrawal. 
C) defined-contribution plans when you resign from the organization. 
D) using the Lifelong Learning Plan to pay for a child's education. 
A) exploring tax savings or tax deductions to which you are entitled. 
B) RRSP deposits, because they only withhold 10 percent of the withdrawal. 
C) defined-contribution plans when you resign from the organization. 
D) using the Lifelong Learning Plan to pay for a child's education.

Question 19

One disadvantage of investing in retirement accounts is that these funds are typically not very liquid.

Accepted Answer

A) True 
 B)False

Question 20

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

RRSPs can contribute to net worth by making withdrawals to purchase a home.

Personal financing

Which of the following is not regarded as a document used for financial planning?

By constantly reviewing your financial plan you will make sure that all of its components are properly integrated to meet your goals.

An example of compounding is

A financial plan should be

What is meant by the financing trade-off?

If you are looking for fast-growth stocks, you should look for stocks that do not pay dividends.

The more money you contribute now to RRSPs and employer retirement plans, the more money you will have at retirement.

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

You should maintain just enough money in liquid assets to satisfy your liquidity needs. Then you can earn a higher return on your other assets.

Which of the following will decrease your net worth?

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

The more you spend, the less money you will have available for liquidity purposes or to make investments or to save for retirement.

You are single, rent an apartment and go to school part-time and work part-time. Which of the following are you most likely to need?

List three ways to protect and maintain your wealth.

Managing liquidity is required

One area that is difficult to understand but can be a source of unexpected cash flow is

One disadvantage of investing in retirement accounts is that these funds are typically not very liquid.

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?

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

Banking Services and Managing Your Money

Managing Your Liquidity - Assessing, Managing, and Securing Your Credit

Personal Financing - Personal Loans

Personal Financing - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowners 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 17: Synthesis of Financial Planning - Integrating the Components of a Financial Plan

RRSPs can contribute to net worth by making withdrawals to purchase a home.

Personal financing

Which of the following is not regarded as a document used for financial planning?

By constantly reviewing your financial plan you will make sure that all of its components are properly integrated to meet your goals.

An example of compounding is

A financial plan should be

What is meant by the financing trade-off?

If you are looking for fast-growth stocks, you should look for stocks that do not pay dividends.

The more money you contribute now to RRSPs and employer retirement plans, the more money you will have at retirement.

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

You should maintain just enough money in liquid assets to satisfy your liquidity needs. Then you can earn a higher return on your other assets.

Which of the following will decrease your net worth?

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

The more you spend, the less money you will have available for liquidity purposes or to make investments or to save for retirement.

You are single, rent an apartment and go to school part-time and work part-time. Which of the following are you most likely to need?

List three ways to protect and maintain your wealth.

Managing liquidity is required

One area that is difficult to understand but can be a source of unexpected cash flow is

One disadvantage of investing in retirement accounts is that these funds are typically not very liquid.

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?

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

Banking Services and Managing Your Money

Managing Your Liquidity - Assessing, Managing, and Securing Your Credit

Personal Financing - Personal Loans

Personal Financing - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowners 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