Question 1

Which of the following would be the primary objective of investing?

Accepted Answer

A) Earning a return 
B) Understanding your risk tolerance 
C) Acquiring an estate 
D) Retiring 
A) Earning a return 
B) Understanding your risk tolerance 
C) Acquiring an estate 
D) Retiring

Question 2

Which of the following would not be a factor in evaluating your current financial position?

Accepted Answer

A) Income 
B) Expenses 
C) Budgeting 
D) Assets 
A) Income 
B) Expenses 
C) Budgeting 
D) Assets

Question 3

Money management decisions include deciding what credit limit you should apply for on your credit card.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is correct?

Accepted Answer

A) Saving part of your income will increase your net worth. 
B) Increasing your income will increase your net worth. 
C) Reducing junk food expenditures will increase your net worth. 
D) All of the above will increase your net worth. 
A) Saving part of your income will increase your net worth. 
B) Increasing your income will increase your net worth. 
C) Reducing junk food expenditures will increase your net worth. 
D) All of the above will increase your net worth.

Question 5

One benefit of estate planning is

Accepted Answer

A) protecting your wealth against unnecessary taxes. 
B) sheltering your wealth against all taxes. 
C) ensuring that your wealth is distributed according to intestacy laws. 
D) ensuring you have enough money to fund your retirement. 
A) protecting your wealth against unnecessary taxes. 
B) sheltering your wealth against all taxes. 
C) ensuring that your wealth is distributed according to intestacy laws. 
D) ensuring you have enough money to fund your retirement.

Question 6

Nicole has been saving $500 each month in her RRSP for the past year,but has been carrying a balance on her credit card for four months now.She is concerned about the high interest charges she has been paying on her credit card.At what stage of the financial plan is she?

Accepted Answer

A) Evaluating the plan 
B) Establishing financial goals 
C) Considering alternate plans 
D) Revising the plan 
A) Evaluating the plan 
B) Establishing financial goals 
C) Considering alternate plans 
D) Revising the plan

Question 7

Which is the most important consideration when establishing your financial goals?

Accepted Answer

A) The emergency fund must be established first. 
B) Short-term goals should be the first priority. 
C) Your goals should be as challenging as possible. 
D) The goals should be specific,measurable and realistic. 
A) The emergency fund must be established first. 
B) Short-term goals should be the first priority. 
C) Your goals should be as challenging as possible. 
D) The goals should be specific,measurable and realistic.

Question 8

An investor who earns $65 000 from employment and saves 4.5 percent from his total income would have increased his net worth in one year by

Accepted Answer

A) $3000. 
B) $2900. 
C) $2925. 
D) $0. 
A) $3000. 
B) $2900. 
C) $2925. 
D) $0.

Question 9

If you have total assets of $10 000 and your net worth is $4000,how much liabilities do you have?

Accepted Answer

A) $4000 
B) $6000 
C) $10 000 
D) $14 000 
A) $4000 
B) $6000 
C) $10 000 
D) $14 000

Question 10

An emergency fund is required in financial planning to

Accepted Answer

A) maintain credit rating. 
B) maintain your standard of living. 
C) manage risk. 
D) maintain adequate liquidity. 
A) maintain credit rating. 
B) maintain your standard of living. 
C) manage risk. 
D) maintain adequate liquidity.

Question 11

Jane's goal to save $200 per month for two years so she can take a trip to Europe is a 'SMART' goal.

Accepted Answer

A) True 
 B)False

Question 12

Jim's plan to reduce his spending on junk food by $20 per month and save those funds until he has a $2000 emergency fund is an example of a 'SMART' goal.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a credit management decision?

Accepted Answer

A) Purchasing a used car with cash 
B) Putting money into an emergency fund 
C) Obtaining a student loan to attend college or university 
D) Putting money into short-term investments 
A) Purchasing a used car with cash 
B) Putting money into an emergency fund 
C) Obtaining a student loan to attend college or university 
D) Putting money into short-term investments

Question 14

What is the process of forecasting future expenses and savings called?

Accepted Answer

A) Budgeting 
B) Planning 
C) Predicting 
D) Forecasting 
A) Budgeting 
B) Planning 
C) Predicting 
D) Forecasting

Question 15

Which of the following is not part of your assets?

Accepted Answer

A) The house you rent 
B) Your car you financed 
C) Your coin collection given to you by your grandfather 
D) Your furniture 
A) The house you rent 
B) Your car you financed 
C) Your coin collection given to you by your grandfather 
D) Your furniture

Question 16

Which of the following is required to access funds to cover any short-term cash deficiencies?

Accepted Answer

A) Investments 
B) Money 
C) Liquidity 
D) Credit 
A) Investments 
B) Money 
C) Liquidity 
D) Credit

Question 17

The per capita debt of Canadians has multiplied by more than five times since 1981.

Accepted Answer

A) True 
 B)False

Which of the following would be the primary objective of investing?

Which of the following would not be a factor in evaluating your current financial position?

Money management decisions include deciding what credit limit you should apply for on your credit card.

Which of the following is correct?

One benefit of estate planning is

Nicole has been saving $500 each month in her RRSP for the past year,but has been carrying a balance on her credit card for four months now.She is concerned about the high interest charges she has been paying on her credit card.At what stage of the financial plan is she?

Which is the most important consideration when establishing your financial goals?

An investor who earns $65 000 from employment and saves 4.5 percent from his total income would have increased his net worth in one year by

If you have total assets of $10 000 and your net worth is $4000,how much liabilities do you have?

An emergency fund is required in financial planning to

Jane's goal to save $200 per month for two years so she can take a trip to Europe is a 'SMART' goal.

Jim's plan to reduce his spending on junk food by $20 per month and save those funds until he has a $2000 emergency fund is an example of a 'SMART' goal.

Which of the following is a credit management decision?

What is the process of forecasting future expenses and savings called?

Which of the following is not part of your assets?

Which of the following is required to access funds to cover any short-term cash deficiencies?

The per capita debt of Canadians has multiplied by more than five times since 1981.

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

Which of the following would be the primary objective of investing?

Which of the following would not be a factor in evaluating your current financial position?

Money management decisions include deciding what credit limit you should apply for on your credit card.

Which of the following is correct?

One benefit of estate planning is

Nicole has been saving $500 each month in her RRSP for the past year,but has been carrying a balance on her credit card for four months now.She is concerned about the high interest charges she has been paying on her credit card.At what stage of the financial plan is she?

Which is the most important consideration when establishing your financial goals?

An investor who earns $65 000 from employment and saves 4.5 percent from his total income would have increased his net worth in one year by

If you have total assets of $10 000 and your net worth is $4000,how much liabilities do you have?

An emergency fund is required in financial planning to

Jane's goal to save $200 per month for two years so she can take a trip to Europe is a 'SMART' goal.

Jim's plan to reduce his spending on junk food by $20 per month and save those funds until he has a $2000 emergency fund is an example of a 'SMART' goal.

Which of the following is a credit management decision?

What is the process of forecasting future expenses and savings called?

Which of the following is not part of your assets?

Which of the following is required to access funds to cover any short-term cash deficiencies?

The per capita debt of Canadians has multiplied by more than five times since 1981.

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