Question 1

It is possible to have too much insurance.

Accepted Answer

A) True 
 B)False  True

Question 2

Withdrawals of interest from a TFSA are

Accepted Answer

A) tax favoured. 
B) taxable. 
C) tax-deductible. 
D) tax-free. 
A) tax favoured. 
B) taxable. 
C) tax-deductible. 
D) tax-free. D

Question 3

Liability insurance provides your beneficiaries with financial support in the event of your death.

Accepted Answer

A) True 
 B)False  False

Question 4

If you do not have a financial plan,you will not likely be able to

Accepted Answer

A) retire. 
B) afford a vacation. 
C) meet your goals. 
D) get married. 
A) retire. 
B) afford a vacation. 
C) meet your goals. 
D) get married.

Question 5

Which of the following is true when comparing RRSPs and TFSAs?

Accepted Answer

A) An RRSP is generally considered to be a more flexible account than a TFSA. 
B) A TFSA is generally considered to be a more flexible account than an RRSP. 
C) TFSAs should be used primarily for short and long term saving needs instead of long term retirement savings. 
D) RRSPs should be used primarily for short and long term saving needs instead of long term retirement savings. 
A) An RRSP is generally considered to be a more flexible account than a TFSA. 
B) A TFSA is generally considered to be a more flexible account than an RRSP. 
C) TFSAs should be used primarily for short and long term saving needs instead of long term retirement savings. 
D) RRSPs should be used primarily for short and long term saving needs instead of long term retirement savings.

Question 6

A financial plan should be prepared when you graduate from college or university

Accepted Answer

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

Question 7

Which of the following statement regarding goals setting is correct?

Accepted Answer

A) Short term,medium term and long term goals should be established and reviewed regularly. 
B) Goals should be set as aggressively as possible and you should push yourself to attain them. 
C) If you don't achieve a goal it means it wasn't an appropriate goal in the first place. 
D) Short term goals need to be more specific than long term goals. 
A) Short term,medium term and long term goals should be established and reviewed regularly. 
B) Goals should be set as aggressively as possible and you should push yourself to attain them. 
C) If you don't achieve a goal it means it wasn't an appropriate goal in the first place. 
D) Short term goals need to be more specific than long term goals.

Question 8

It is easier to cover monthly loan payments if you select financing with

Accepted Answer

A) a relatively long term. 
B) a relatively short term. 
C) a fixed interest rate. 
D) a high interest rate. 
A) a relatively long term. 
B) a relatively short term. 
C) a fixed interest rate. 
D) a high interest rate.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Regularly reviewing your financial plan is the only way to make sure that all of its components are properly integrated to meet your goals.

Accepted Answer

A) True 
 B)False

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

Investing in mutual funds is generally considered to be a conservative investment strategy.

Accepted Answer

A) True 
 B)False

Question 13

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 14

All components of a financial plan start with

Accepted Answer

A) your financial goals. 
B) cost benefit analysis. 
C) security planning. 
D) budgeting. 
A) your financial goals. 
B) cost benefit analysis. 
C) security planning. 
D) budgeting.

Question 15

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 16

When considering the goal of funding retirement the best strategy is to

Accepted Answer

A) rely on getting a job with a good pension plan. 
B) ensure that you have enough cash flow to save in an RRSP or TFSA. 
C) rely on CPP and OAS to look after most of your retirement needs. 
D) pay off large purchases before opening an RRSP. 
A) rely on getting a job with a good pension plan. 
B) ensure that you have enough cash flow to save in an RRSP or TFSA. 
C) rely on CPP and OAS to look after most of your retirement needs. 
D) pay off large purchases before opening an RRSP.

Question 17

If you want to use funds from your RRSP for furthering your education,the Lifelong Learning plan is the only way to get at that money without paying full tax on it.

Accepted Answer

A) True 
 B)False

Question 18

Paying off loans rather than making additional investments is appropriate when the expected investment return is higher than the interest rates on loans.

Accepted Answer

A) True 
 B)False

Question 19

Once you have enough assets to last you three years of expenses,it is not advisable to pay for disability insurance.

Accepted Answer

A) True 
 B)False

Question 20

Even average earners can accumulate wealth by

Accepted Answer

A) spending less than they make. 
B) saving more than they make. 
C) borrowing to buy what they want. 
D) winning the lottery. 
A) spending less than they make. 
B) saving more than they make. 
C) borrowing to buy what they want. 
D) winning the lottery.

It is possible to have too much insurance.

Withdrawals of interest from a TFSA are

Liability insurance provides your beneficiaries with financial support in the event of your death.

If you do not have a financial plan,you will not likely be able to

Which of the following is true when comparing RRSPs and TFSAs?

A financial plan should be prepared when you graduate from college or university

Which of the following statement regarding goals setting is correct?

It is easier to cover monthly loan payments if you select financing with

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

Regularly reviewing your financial plan is the only way to make sure that all of its components are properly integrated to meet your goals.

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.

Investing in mutual funds is generally considered to be a conservative investment strategy.

Which of the following investments reduces your taxable income?

All components of a financial plan start with

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

When considering the goal of funding retirement the best strategy is to

If you want to use funds from your RRSP for furthering your education,the Lifelong Learning plan is the only way to get at that money without paying full tax on it.

Paying off loans rather than making additional investments is appropriate when the expected investment return is higher than the interest rates on loans.

Once you have enough assets to last you three years of expenses,it is not advisable to pay for disability insurance.

Even average earners can accumulate wealth by

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 6: Synthesis of Financial Planning - Integrating the Components of a Financial Plan

It is possible to have too much insurance.

Withdrawals of interest from a TFSA are

Liability insurance provides your beneficiaries with financial support in the event of your death.

If you do not have a financial plan,you will not likely be able to

Which of the following is true when comparing RRSPs and TFSAs?

A financial plan should be prepared when you graduate from college or university

Which of the following statement regarding goals setting is correct?

It is easier to cover monthly loan payments if you select financing with

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

Regularly reviewing your financial plan is the only way to make sure that all of its components are properly integrated to meet your goals.

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.

Investing in mutual funds is generally considered to be a conservative investment strategy.

Which of the following investments reduces your taxable income?

All components of a financial plan start with

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

When considering the goal of funding retirement the best strategy is to

If you want to use funds from your RRSP for furthering your education,the Lifelong Learning plan is the only way to get at that money without paying full tax on it.

Paying off loans rather than making additional investments is appropriate when the expected investment return is higher than the interest rates on loans.

Once you have enough assets to last you three years of expenses,it is not advisable to pay for disability insurance.

Even average earners can accumulate wealth by

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