Question 1

Which of the following would increase your liquid assets?

Accepted Answer

A) Paying off a loan 
B) Depositing funds to a savings account 
C) Buying rental property 
D) Contributing to an RRSP 
A) Paying off a loan 
B) Depositing funds to a savings account 
C) Buying rental property 
D) Contributing to an RRSP

Question 2

The lower your debt-to-asset ratio is,the easier it is to increase net worth.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is required in creating a cash flow statement?

Accepted Answer

A) The values of all assets 
B) Value of all liabilities 
C) Amounts used for expenses 
D) The ideal emergency fund amount 
A) The values of all assets 
B) Value of all liabilities 
C) Amounts used for expenses 
D) The ideal emergency fund amount

Question 4

Paying $2000 to reduce your car loan to $5000 would increase your debt-to-asset ratio (all else being equal).

Accepted Answer

A) True 
 B)False

Question 5

Which of the following usually affects cash inflows the most?

Accepted Answer

A) The education and income of your parents 
B) Your job skills 
C) Your personal consumption behaviour 
D) The size of your family 
A) The education and income of your parents 
B) Your job skills 
C) Your personal consumption behaviour 
D) The size of your family

Question 6

This month Joshua has $2000 income from his job and $100 interest income.His expenses are rent $500,food and entertainment $400 and car expenses $600.He has $40 000 held in bonds and a car loan of $10 000.What is his cash flow this month?

Accepted Answer

A) $600 
B) $500 
C) -$9400 
D) $30 600 
A) $600 
B) $500 
C) -$9400 
D) $30 600

Question 7

Mutual funds are portfolio investments that require investors to make individual stock or bond investment decisions themselves.

Accepted Answer

A) True 
 B)False

Question 8

Jeff has a $1000 salary and $100 dividend income this month.This month Jeff has rent and utilities of $600 and he spent $200 on groceries and $100 on clothing.What is his net cash flow this month?

Accepted Answer

A) $500 
B) $100 
C) $200 
D) $1100 
A) $500 
B) $100 
C) $200 
D) $1100

Question 9

Students with a negative net worth are essentially bankrupt.

Accepted Answer

A) True 
 B)False

Question 10

What are net cash flows?

Accepted Answer

A) All assets minus liabilities 
B) All incomes minus living expenses 
C) Current assets minus current liabilities 
D) After-tax income minus expenses 
A) All assets minus liabilities 
B) All incomes minus living expenses 
C) Current assets minus current liabilities 
D) After-tax income minus expenses

Question 11

Marta has been keen on following her budget for some time,but unexpected expenses such as car repairs or broken appliances always seem to force her to cancel her vacation each year.Suggest what course of action Marta should follow.

Accepted Answer

Marta has not likely budgeted for an eme

Question 12

Someone with a monthly income of $5000,$5000 in their checking account and monthly expenses of $5000 would have Liquidity Ratio of 2.

Accepted Answer

A) True 
 B)False

Question 13

A liquidity ratio between 1 and 2 is ideal.

Accepted Answer

A) True 
 B)False

Question 14

This month Joshua has $2000 income from his job and $100 interest income.His expenses are rent $500,food and entertainment $400,car expenses $600.He has $40 000 held in bonds and a car loan of $10 000.What is his net worth?

Accepted Answer

A) $30 000 
B) $32 100 
C) $30 600 
D) $30 500 
A) $30 000 
B) $32 100 
C) $30 600 
D) $30 500

Question 15

When a person owns corporate stocks,government or corporate bonds,or mutual funds,these are called

Accepted Answer

A) liquid assets. 
B) long-term assets. 
C) investment assets. 
D) retirement assets. 
A) liquid assets. 
B) long-term assets. 
C) investment assets. 
D) retirement assets.

Question 16

Which of the following is not a True statement about mutual funds?

Accepted Answer

A) They are managed by professional managers. 
B) They are only invested in stocks. 
C) A minimum investment is required. 
D) The value of shares is reported in The Globe and Mail. 
A) They are managed by professional managers. 
B) They are only invested in stocks. 
C) A minimum investment is required. 
D) The value of shares is reported in The Globe and Mail.

Question 17

Which one of the following is a liquid asset?

Accepted Answer

A) Money in a savings account 
B) A car 
C) Cash in an RRSP 
D) Stock held in an investment account 
A) Money in a savings account 
B) A car 
C) Cash in an RRSP 
D) Stock held in an investment account

Question 18

Which of the following is not a liquid asset?

Accepted Answer

A) Cash in your pocket 
B) Money in a savings account 
C) Access to your credit card 
D) Money in your chequing account 
A) Cash in your pocket 
B) Money in a savings account 
C) Access to your credit card 
D) Money in your chequing account

Question 19

Which of the following is not considered an asset for a family?

Accepted Answer

A) Cash in a chequing account 
B) A mortgaged home 
C) A leased car 
D) Furniture 
A) Cash in a chequing account 
B) A mortgaged home 
C) A leased car 
D) Furniture

Question 20

Which of the following is not a cash inflow?

Accepted Answer

A) Interest received 
B) Dividend income 
C) Car payment 
D) Salary 
A) Interest received 
B) Dividend income 
C) Car payment 
D) Salary

Which of the following would increase your liquid assets?

The lower your debt-to-asset ratio is,the easier it is to increase net worth.

Which of the following is required in creating a cash flow statement?

Paying $2000 to reduce your car loan to $5000 would increase your debt-to-asset ratio (all else being equal).

Which of the following usually affects cash inflows the most?

This month Joshua has $2000 income from his job and $100 interest income.His expenses are rent $500,food and entertainment $400 and car expenses $600.He has $40 000 held in bonds and a car loan of $10 000.What is his cash flow this month?

Mutual funds are portfolio investments that require investors to make individual stock or bond investment decisions themselves.

Jeff has a $1000 salary and $100 dividend income this month.This month Jeff has rent and utilities of $600 and he spent $200 on groceries and $100 on clothing.What is his net cash flow this month?

Students with a negative net worth are essentially bankrupt.

What are net cash flows?

Marta has been keen on following her budget for some time,but unexpected expenses such as car repairs or broken appliances always seem to force her to cancel her vacation each year.Suggest what course of action Marta should follow.

Someone with a monthly income of $5000,$5000 in their checking account and monthly expenses of $5000 would have Liquidity Ratio of 2.

A liquidity ratio between 1 and 2 is ideal.

This month Joshua has $2000 income from his job and $100 interest income.His expenses are rent $500,food and entertainment $400,car expenses $600.He has $40 000 held in bonds and a car loan of $10 000.What is his net worth?

When a person owns corporate stocks,government or corporate bonds,or mutual funds,these are called

Which of the following is not a True statement about mutual funds?

Which one of the following is a liquid asset?

Which of the following is not a liquid asset?

Which of the following is not considered an asset for a family?

Which of the following is not a cash inflow?

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

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 3: Tools for Financial Planning - Planning with Personal Financial Statements

Which of the following would increase your liquid assets?

The lower your debt-to-asset ratio is,the easier it is to increase net worth.

Which of the following is required in creating a cash flow statement?

Paying $2000 to reduce your car loan to $5000 would increase your debt-to-asset ratio (all else being equal).

Which of the following usually affects cash inflows the most?

This month Joshua has $2000 income from his job and $100 interest income.His expenses are rent $500,food and entertainment $400 and car expenses $600.He has $40 000 held in bonds and a car loan of $10 000.What is his cash flow this month?

Mutual funds are portfolio investments that require investors to make individual stock or bond investment decisions themselves.

Jeff has a $1000 salary and $100 dividend income this month.This month Jeff has rent and utilities of $600 and he spent $200 on groceries and $100 on clothing.What is his net cash flow this month?

Students with a negative net worth are essentially bankrupt.

What are net cash flows?

Marta has been keen on following her budget for some time,but unexpected expenses such as car repairs or broken appliances always seem to force her to cancel her vacation each year.Suggest what course of action Marta should follow.

Someone with a monthly income of $5000,$5000 in their checking account and monthly expenses of $5000 would have Liquidity Ratio of 2.

A liquidity ratio between 1 and 2 is ideal.

This month Joshua has $2000 income from his job and $100 interest income.His expenses are rent $500,food and entertainment $400,car expenses $600.He has $40 000 held in bonds and a car loan of $10 000.What is his net worth?

When a person owns corporate stocks,government or corporate bonds,or mutual funds,these are called

Which of the following is not a True statement about mutual funds?

Which one of the following is a liquid asset?

Which of the following is not a liquid asset?

Which of the following is not considered an asset for a family?

Which of the following is not a cash inflow?

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

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