Question 1

If you were accepting $22 000 payment for selling your car to a stranger,which form of payment should you request?

Accepted Answer

A) Bank draft 
B) Money order 
C) Certified cheque 
D) Any of the above 
A) Bank draft 
B) Money order 
C) Certified cheque 
D) Any of the above D

Question 2

Which of the following companies would help to administer your will?

Accepted Answer

A) RBC Capital Markets 
B) RBC Estate and Trust 
C) RBC Insurance 
D) Ontario Educational Credit Union 
A) RBC Capital Markets 
B) RBC Estate and Trust 
C) RBC Insurance 
D) Ontario Educational Credit Union B

Question 3

A money market fund would be a good place to invest funds set aside for an emergency.

Accepted Answer

A) True 
 B)False  True

Question 4

Angela is concerned about saving money for the future and taking advantage of TFSA and RRSP accounts.If she was able to save $500 a month for 40 years,and her marginal tax bracket was 36%,how much more would she have in her RRSP,versus her TFSA,versus saving the funds in an unsheltered investment account? Assume the investment choice was the same for each account and grew at an annual rate of 6%.
Show your work.

Accepted Answer

There are a number of assumptions that c

Question 5

A stop payment on a cheque

Accepted Answer

A) only applies when you write a cheque. 
B) can only be accomplished if the payment has not cleared. 
C) usually occurs in response to a request by the payee 
D) is a regular service for most customers. 
A) only applies when you write a cheque. 
B) can only be accomplished if the payment has not cleared. 
C) usually occurs in response to a request by the payee 
D) is a regular service for most customers.

Question 6

Describe how interest rates affect your personal budget,income statement,balance sheet,and choices when managing money and liquidity.What kinds of accounts do they affect? Give two specific examples.

Accepted Answer

This is a subjective answer.Interest rat

Question 7

Foreign banks that have subsidiaries operating in Canada are classified as a

Accepted Answer

A) Schedule III bank. 
B) Schedule II bank. 
C) Schedule I bank. 
D) foreign conglomerate. 
A) Schedule III bank. 
B) Schedule II bank. 
C) Schedule I bank. 
D) foreign conglomerate.

Question 8

Which of the following provides the least guarantee of payment to the payee?

Accepted Answer

A) Certified cheque 
B) Money order 
C) Traveller's cheque 
D) Personal cheque 
A) Certified cheque 
B) Money order 
C) Traveller's cheque 
D) Personal cheque

Question 9

Using an ABM from another financial institution other than your own means

Accepted Answer

A) your debit card won't work. 
B) you will be charged one ABM fee. 
C) you will be charged fees by two ABM sponsors. 
D) the branch is the same institution but not your banking branch. 
A) your debit card won't work. 
B) you will be charged one ABM fee. 
C) you will be charged fees by two ABM sponsors. 
D) the branch is the same institution but not your banking branch.

Question 10

Financial institutions loan funds at

Accepted Answer

A) lower interest rates than depositors receive. 
B) higher interest rates than depositors receive. 
C) rates similar to what savers receive. 
D) prime plus three percent. 
A) lower interest rates than depositors receive. 
B) higher interest rates than depositors receive. 
C) rates similar to what savers receive. 
D) prime plus three percent.

Question 11

The difference between a bank and a trust company is that only the trust company can provide estate planning and administrative services.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a true statement about overdraft protection?

Accepted Answer

A) Overdraft protection is an inexpensive form of short-term credit. 
B) Your bank may charge you for having overdraft protection even if you don't use it. 
C) Overdraft fees are already included in your regular monthly bank fees. 
D) Overdraft interest may be as high as 29% compounded daily. 
A) Overdraft protection is an inexpensive form of short-term credit. 
B) Your bank may charge you for having overdraft protection even if you don't use it. 
C) Overdraft fees are already included in your regular monthly bank fees. 
D) Overdraft interest may be as high as 29% compounded daily.

Question 13

In planning a money management strategy,which of the following is most important?

Accepted Answer

A) Select a combination of investments with varying risk and return. 
B) Select a combination of investments to achieve both adequate liquidity and return. 
C) Ensure all short-term investments are fully liquid. 
D) Shop around to find the institution paying the highest interest rates on GICs. 
A) Select a combination of investments with varying risk and return. 
B) Select a combination of investments to achieve both adequate liquidity and return. 
C) Ensure all short-term investments are fully liquid. 
D) Shop around to find the institution paying the highest interest rates on GICs.

Question 14

Which of the following financial institutions are restricted in their ability to accept deposits?

Accepted Answer

A) Trust Companies 
B) Schedule I banks 
C) Schedule II banks 
D) Schedule III banks 
A) Trust Companies 
B) Schedule I banks 
C) Schedule II banks 
D) Schedule III banks

Question 15

To get a better rate on an emergency fund investment you should invest in a

Accepted Answer

A) five-year cashable GIC. 
B) one-year non-cashable GIC. 
C) money market fund. 
D) one-year term deposit 
A) five-year cashable GIC. 
B) one-year non-cashable GIC. 
C) money market fund. 
D) one-year term deposit

Question 16

Which of the following is the better banking option for Jane who keeps a minimum bank balance of $1000,needs liquidity and does ten transactions per month?

Accepted Answer

A) Ace Bank pays no interest,has no ABM fees but charges a $7.00 monthly account fee. 
B) Bee Bank charges a $60 annual fee for the account,pays interest at two percent on the average monthly balance,and has $1.00 ABM fees. 
C) Sea Bank charges no fees as long as the account balance remains above $1000,pays two percent interest on the average monthly balance,charges $1.00 ABM fees,and requires no minimum balance. 
D) Dee Bank requires no minimum balance,pays one percent interest on the average monthly balance,and allows 10 free ABM withdrawals a month,but charges $3 per withdrawal thereafter. 
A) Ace Bank pays no interest,has no ABM fees but charges a $7.00 monthly account fee. 
B) Bee Bank charges a $60 annual fee for the account,pays interest at two percent on the average monthly balance,and has $1.00 ABM fees. 
C) Sea Bank charges no fees as long as the account balance remains above $1000,pays two percent interest on the average monthly balance,charges $1.00 ABM fees,and requires no minimum balance. 
D) Dee Bank requires no minimum balance,pays one percent interest on the average monthly balance,and allows 10 free ABM withdrawals a month,but charges $3 per withdrawal thereafter.

Question 17

Non-depository institutions provide banking services,but their deposits are not CDIC insured.

Accepted Answer

A) True 
 B)False

Question 18

A TFSA and a Term Deposit are essentially the same thing.

Accepted Answer

A) True 
 B)False

Question 19

The type of financing that allows you to pay for purchases at a later time with no interest charged is

Accepted Answer

A) a credit card. 
B) a debit card. 
C) an expense account. 
D) a line of credit. 
A) a credit card. 
B) a debit card. 
C) an expense account. 
D) a line of credit.

Question 20

A total of $80 in charges for writing an NSF cheque is a real possibility.

Accepted Answer

A) True 
 B)False

If you were accepting $22 000 payment for selling your car to a stranger,which form of payment should you request?

Which of the following companies would help to administer your will?

A money market fund would be a good place to invest funds set aside for an emergency.

A stop payment on a cheque

Describe how interest rates affect your personal budget,income statement,balance sheet,and choices when managing money and liquidity.What kinds of accounts do they affect? Give two specific examples.

Foreign banks that have subsidiaries operating in Canada are classified as a

Which of the following provides the least guarantee of payment to the payee?

Using an ABM from another financial institution other than your own means

Financial institutions loan funds at

The difference between a bank and a trust company is that only the trust company can provide estate planning and administrative services.

Which of the following is a true statement about overdraft protection?

In planning a money management strategy,which of the following is most important?

Which of the following financial institutions are restricted in their ability to accept deposits?

To get a better rate on an emergency fund investment you should invest in a

Which of the following is the better banking option for Jane who keeps a minimum bank balance of $1000,needs liquidity and does ten transactions per month?

Non-depository institutions provide banking services,but their deposits are not CDIC insured.

A TFSA and a Term Deposit are essentially the same thing.

The type of financing that allows you to pay for purchases at a later time with no interest charged is

A total of $80 in charges for writing an NSF cheque is a real possibility.

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 - 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

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

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Exam 2: Managing Your Financial Resources - Banking Services and Managing Your Money

If you were accepting $22 000 payment for selling your car to a stranger,which form of payment should you request?

Which of the following companies would help to administer your will?

A money market fund would be a good place to invest funds set aside for an emergency.

A stop payment on a cheque

Describe how interest rates affect your personal budget,income statement,balance sheet,and choices when managing money and liquidity.What kinds of accounts do they affect? Give two specific examples.

Foreign banks that have subsidiaries operating in Canada are classified as a

Which of the following provides the least guarantee of payment to the payee?

Using an ABM from another financial institution other than your own means

Financial institutions loan funds at

The difference between a bank and a trust company is that only the trust company can provide estate planning and administrative services.

Which of the following is a true statement about overdraft protection?

In planning a money management strategy,which of the following is most important?

Which of the following financial institutions are restricted in their ability to accept deposits?

To get a better rate on an emergency fund investment you should invest in a

Which of the following is the better banking option for Jane who keeps a minimum bank balance of $1000,needs liquidity and does ten transactions per month?

Non-depository institutions provide banking services,but their deposits are not CDIC insured.

A TFSA and a Term Deposit are essentially the same thing.

The type of financing that allows you to pay for purchases at a later time with no interest charged is

A total of $80 in charges for writing an NSF cheque is a real possibility.

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 - 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

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

Filters