Question 1

Which of the following investments reduces your taxable income?

Accepted Answer

A) Stocks 
B) RRSP contributions 
C) Mutual funds 
D) Bonds 
A) Stocks 
B) RRSP contributions 
C) Mutual funds 
D) Bonds

Question 2

Property insurance provides your family or beneficiaries with financial support in the event of your death.

Accepted Answer

A) True 
 B)False

Question 3

By investing a portion of your income consistently over time, you should attain your goals.

Accepted Answer

A) True 
 B)False

Question 4

Monitoring liquidity includes tracking your

Accepted Answer

A) RRSP balances. 
B) emergency funds. 
C) TFSA growth stocks. 
D) bond mutual funds. 
A) RRSP balances. 
B) emergency funds. 
C) TFSA growth stocks. 
D) bond mutual funds.

Question 5

In retirement you need income, so you should invest in

Accepted Answer

A) bonds and stable companies with dividends. 
B) growth stocks. 
C) strip bonds. 
D) global mutual funds. 
A) bonds and stable companies with dividends. 
B) growth stocks. 
C) strip bonds. 
D) global mutual funds.

Question 6

To budget for savings or retirement, you should ensure that you have net cash flows every month.

Accepted Answer

A) True 
 B)False

Question 7

Budgeting decisions involve a trade-off between spending today and allocating funds for the future.

Accepted Answer

A) True 
 B)False

Question 8

Key documents for managing investments include

Accepted Answer

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

Question 9

What is the liquidity trade-off?

Accepted Answer

A) Determining the best liquid assets 
B) Having enough liquid assets to cover cash deficiencies for one year in advance 
C) Maintaining adequate liquidity to avoid borrowing every time you need money 
D) Maintaining enough liquid assets to meet obligations and earning a higher return on other assets 
A) Determining the best liquid assets 
B) Having enough liquid assets to cover cash deficiencies for one year in advance 
C) Maintaining adequate liquidity to avoid borrowing every time you need money 
D) Maintaining enough liquid assets to meet obligations and earning a higher return on other assets

Question 10

The six steps, in correct order, for completing a financial plan would be

Accepted Answer

A) establish your financial goals, consider your current position, identify alternate plans to reach goals, select and implement a plan, revise the plan if necessary, and evaluate the plan. 
B) establish your financial goals, consider your current position, identify alternate plans to reach goals, select and implement a plan, evaluate the plan, and revise the plan if necessary. 
C) establish your financial goals, identify alternate plans to reach goals, consider your current position, select and implement a plan, evaluate the plan, and revise the plan if necessary. 
D) establish your financial goals, budget, identify alternate plans to reach goals, select and implement a plan, evaluate the plan, and revise the plan if necessary. 
A) establish your financial goals, consider your current position, identify alternate plans to reach goals, select and implement a plan, revise the plan if necessary, and evaluate the plan. 
B) establish your financial goals, consider your current position, identify alternate plans to reach goals, select and implement a plan, evaluate the plan, and revise the plan if necessary. 
C) establish your financial goals, identify alternate plans to reach goals, consider your current position, select and implement a plan, evaluate the plan, and revise the plan if necessary. 
D) establish your financial goals, budget, identify alternate plans to reach goals, select and implement a plan, evaluate the plan, and revise the plan if necessary.

Question 11

Which of the following key documents should be constantly available for review?

Accepted Answer

A) The only copy of your will 
B) Your monthly bank statement 
C) Original copies of life insurance policies 
D) The deed to your house 
A) The only copy of your will 
B) Your monthly bank statement 
C) Original copies of life insurance policies 
D) The deed to your house

Question 12

You may want to make additional loan payments if the interest rate you are paying is higher than you could obtain from an investment.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

Having a power of attorney will guarantee the preservation of your net worth should you become incapacitated.

Accepted Answer

A) True 
 B)False

Question 15

Normally, making large purchases through financing can increase the amount of your

Accepted Answer

A) assets. 
B) net worth. 
C) insurance. 
D) liquid assets. 
A) assets. 
B) net worth. 
C) insurance. 
D) liquid assets.

Question 16

It is important to consider your goals before putting money into your investments or retirement accounts.

Accepted Answer

A) True 
 B)False

Question 17

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 you continually stress over

Accepted Answer

Very broad answers w

Question 18

Which of the following investments achieves the greatest diversification?

Accepted Answer

A) Stocks 
B) Bonds 
C) Mutual funds 
D) Savings accounts 
A) Stocks 
B) Bonds 
C) Mutual funds 
D) Savings accounts

Question 19

Compared to the stocks of larger firms, the stocks of smaller firms are

Accepted Answer

A) less volatile. 
B) more volatile. 
C) more liquid. 
D) safer. 
A) less volatile. 
B) more volatile. 
C) more liquid. 
D) safer.

Question 20

When incompetent, the only way you can make arrangements about decisions on your health care is to complete a non-durable power of attorney.

Accepted Answer

A) True 
 B)False

Which of the following investments reduces your taxable income?

Property insurance provides your family or beneficiaries with financial support in the event of your death.

By investing a portion of your income consistently over time, you should attain your goals.

Monitoring liquidity includes tracking your

In retirement you need income, so you should invest in

To budget for savings or retirement, you should ensure that you have net cash flows every month.

Budgeting decisions involve a trade-off between spending today and allocating funds for the future.

Key documents for managing investments include

What is the liquidity trade-off?

The six steps, in correct order, for completing a financial plan would be

Which of the following key documents should be constantly available for review?

You may want to make additional loan payments if the interest rate you are paying is higher than you could obtain from an investment.

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

Having a power of attorney will guarantee the preservation of your net worth should you become incapacitated.

Normally, making large purchases through financing can increase the amount of your

It is important to consider your goals before putting money into your investments or retirement accounts.

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 you continually stress over

Which of the following investments achieves the greatest diversification?

Compared to the stocks of larger firms, the stocks of smaller firms are

When incompetent, the only way you can make arrangements about decisions on your health care is to complete a non-durable power of attorney.

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

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Exam 17: Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Which of the following investments reduces your taxable income?

Property insurance provides your family or beneficiaries with financial support in the event of your death.

By investing a portion of your income consistently over time, you should attain your goals.

Monitoring liquidity includes tracking your

In retirement you need income, so you should invest in

To budget for savings or retirement, you should ensure that you have net cash flows every month.

Budgeting decisions involve a trade-off between spending today and allocating funds for the future.

Key documents for managing investments include

What is the liquidity trade-off?

The six steps, in correct order, for completing a financial plan would be

Which of the following key documents should be constantly available for review?

You may want to make additional loan payments if the interest rate you are paying is higher than you could obtain from an investment.

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

Having a power of attorney will guarantee the preservation of your net worth should you become incapacitated.

Normally, making large purchases through financing can increase the amount of your

It is important to consider your goals before putting money into your investments or retirement accounts.

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 you continually stress over

Which of the following investments achieves the greatest diversification?

Compared to the stocks of larger firms, the stocks of smaller firms are

When incompetent, the only way you can make arrangements about decisions on your health care is to complete a non-durable power of attorney.

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