Question 1

Credit is commonly used to cover both large and small expenses.What is the best way to think about credit?

Accepted Answer

A) Most Canadian are overextended on credit. 
B) It is a better source of liquidity than an emergency fund. 
C) It is an important part of liquidity but needs to be managed. 
D) It should never be used for liquidity. 
A) Most Canadian are overextended on credit. 
B) It is a better source of liquidity than an emergency fund. 
C) It is an important part of liquidity but needs to be managed. 
D) It should never be used for liquidity. C

Question 2

A type of insurance that protects assets is

Accepted Answer

A) home insurance. 
B) self-insurance. 
C) disability insurance. 
D) health insurance. 
A) home insurance. 
B) self-insurance. 
C) disability insurance. 
D) health insurance. A

Question 3

If you do not have access to money to cover your cash needs,you may have insufficient liquidity.

Accepted Answer

A) True 
 B)False  True

Question 4

From 1990 to 2011,consumer bankruptcies increased 122 percent.

Accepted Answer

A) True 
 B)False

Question 5

According to a 2011 study,75 percent of youth carry debt.

Accepted Answer

A) True 
 B)False

Question 6

A thorough understanding of this personal finance textbook qualifies you to become a financial adviser.

Accepted Answer

A) True 
 B)False

Question 7

If you spend $20 for your dinner,an opportunity cost is that you have forgone the possibility of using that money to buy gasoline for your car.

Accepted Answer

A) True 
 B)False

Question 8

Budgeting helps set goals by estimating on a monthly basis which of the following?

Accepted Answer

A) Assets and income 
B) Liabilities and expenses 
C) Income and expenses 
D) Net worth and income 
A) Assets and income 
B) Liabilities and expenses 
C) Income and expenses 
D) Net worth and income

Question 9

Which of the following items is not a liability?

Accepted Answer

A) The balance due on your credit card 
B) Your college or university loans 
C) The wages you give up to take a class 
D) An IOU to your roommate 
A) The balance due on your credit card 
B) Your college or university loans 
C) The wages you give up to take a class 
D) An IOU to your roommate

Question 10

Which of the following is an example of an opportunity cost?

Accepted Answer

A) Renting an apartment near school instead of living with your parents 
B) Saving money instead of taking a vacation 
C) Saving for an emergency fund instead of maximizing your RRSPs 
D) They are all examples of opportunity cost. 
A) Renting an apartment near school instead of living with your parents 
B) Saving money instead of taking a vacation 
C) Saving for an emergency fund instead of maximizing your RRSPs 
D) They are all examples of opportunity cost.

Question 11

Why is a net worth statement needed?

Accepted Answer

A) To determine your net cash flow on an annual basis 
B) To measure your cash accumulation 
C) To measure the value of your assets minus debts 
D) To measure expenses and develop priorities 
A) To determine your net cash flow on an annual basis 
B) To measure your cash accumulation 
C) To measure the value of your assets minus debts 
D) To measure expenses and develop priorities

Question 12

There are four key steps in developing a financial plan: 1.Establishing goals;2.Considering your current financial position;3.Selecting the best options to reach your goals and 4.Revising your plan annually.

Accepted Answer

A) True 
 B)False

Question 13

What is the best measure of a person's or family's net wealth?

Accepted Answer

A) The value of their assets 
B) The amount of annual income 
C) The value of what they own minus the value of what they owe 
D) The value of their gross income minus the value of their expenses 
A) The value of their assets 
B) The amount of annual income 
C) The value of what they own minus the value of what they owe 
D) The value of their gross income minus the value of their expenses

Question 14

The Financial Planning Standards Council (FPSC)is a profit-oriented organization created to benefit the public with regards to financial planning.

Accepted Answer

A) True 
 B)False

Question 15

Name the six steps in the financial planning process and give an example of one activity that would occur at each step.

Accepted Answer

Many possibilities but overall cover the

Question 16

In the early earnings life stage of financial planning,which of the following is the most important to address?

Accepted Answer

A) Maintaining job security 
B) Considering when to have children 
C) Understanding your pension and CPP 
D) Figuring out the best balance of saving and liquidity 
A) Maintaining job security 
B) Considering when to have children 
C) Understanding your pension and CPP 
D) Figuring out the best balance of saving and liquidity

Question 17

Which of the following goals would be 'SMART'?

Accepted Answer

A) Reduce debt payments. 
B) Save funds for an annual vacation. 
C) Save $100 per month to create a $4000 emergency fund. 
D) Invest for a comfortable retirement. 
A) Reduce debt payments. 
B) Save funds for an annual vacation. 
C) Save $100 per month to create a $4000 emergency fund. 
D) Invest for a comfortable retirement.

Question 18

A complete financial plan consists of budgeting,tax planning,financing,and investing.

Accepted Answer

A) True 
 B)False

Question 19

Key components of a financial plan include

Accepted Answer

A) saving,spending and investment planning. 
B) liquidity,credit and tax planning. 
C) insurance,financing,and investment planning. 
D) liquidity,retirement and estate planning. 
A) saving,spending and investment planning. 
B) liquidity,credit and tax planning. 
C) insurance,financing,and investment planning. 
D) liquidity,retirement and estate planning.

Question 20

An example of a short-term goal would be

Accepted Answer

A) how much of an RRSP contribution to make this year. 
B) paying off student loans over five years. 
C) saving for a 20 percent down payment on a home in four years. 
D) leasing a car for three years. 
A) how much of an RRSP contribution to make this year. 
B) paying off student loans over five years. 
C) saving for a 20 percent down payment on a home in four years. 
D) leasing a car for three years.

Credit is commonly used to cover both large and small expenses.What is the best way to think about credit?

A type of insurance that protects assets is

If you do not have access to money to cover your cash needs,you may have insufficient liquidity.

From 1990 to 2011,consumer bankruptcies increased 122 percent.

According to a 2011 study,75 percent of youth carry debt.

A thorough understanding of this personal finance textbook qualifies you to become a financial adviser.

If you spend $20 for your dinner,an opportunity cost is that you have forgone the possibility of using that money to buy gasoline for your car.

Budgeting helps set goals by estimating on a monthly basis which of the following?

Which of the following items is not a liability?

Which of the following is an example of an opportunity cost?

Why is a net worth statement needed?

There are four key steps in developing a financial plan: 1.Establishing goals;2.Considering your current financial position;3.Selecting the best options to reach your goals and 4.Revising your plan annually.

What is the best measure of a person's or family's net wealth?

The Financial Planning Standards Council (FPSC)is a profit-oriented organization created to benefit the public with regards to financial planning.

Name the six steps in the financial planning process and give an example of one activity that would occur at each step.

In the early earnings life stage of financial planning,which of the following is the most important to address?

Which of the following goals would be 'SMART'?

A complete financial plan consists of budgeting,tax planning,financing,and investing.

Key components of a financial plan include

An example of a short-term goal would be

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

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

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Exam 1: Overview of a Financial Plan

Credit is commonly used to cover both large and small expenses.What is the best way to think about credit?

A type of insurance that protects assets is

If you do not have access to money to cover your cash needs,you may have insufficient liquidity.

From 1990 to 2011,consumer bankruptcies increased 122 percent.

According to a 2011 study,75 percent of youth carry debt.

A thorough understanding of this personal finance textbook qualifies you to become a financial adviser.

If you spend $20 for your dinner,an opportunity cost is that you have forgone the possibility of using that money to buy gasoline for your car.

Budgeting helps set goals by estimating on a monthly basis which of the following?

Which of the following items is not a liability?

Which of the following is an example of an opportunity cost?

Why is a net worth statement needed?

There are four key steps in developing a financial plan: 1.Establishing goals;2.Considering your current financial position;3.Selecting the best options to reach your goals and 4.Revising your plan annually.

What is the best measure of a person's or family's net wealth?

The Financial Planning Standards Council (FPSC)is a profit-oriented organization created to benefit the public with regards to financial planning.

Name the six steps in the financial planning process and give an example of one activity that would occur at each step.

In the early earnings life stage of financial planning,which of the following is the most important to address?

Which of the following goals would be 'SMART'?

A complete financial plan consists of budgeting,tax planning,financing,and investing.

Key components of a financial plan include

An example of a short-term goal would be

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

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

Filters