Question 1

A decrease in net worth would be the result of:

Accepted Answer

A)  income greater than expenses for a month. 
B)  expenses greater than income for a month. 
C)  assets greater than expenses. 
D)  increased earnings on the job. 
E)  income and expenses equal for a month. 
A)  income greater than expenses for a month. 
B)  expenses greater than income for a month. 
C)  assets greater than expenses. 
D)  increased earnings on the job. 
E)  income and expenses equal for a month. B

Question 2

Which of the following financial documents would most likely be stored in a safety deposit box?

Accepted Answer

A)  Tax records 
B)  Personal financial statements 
C)  Warranties 
D)  Mortgage papers 
E)  Checking account statements 
A)  Tax records 
B)  Personal financial statements 
C)  Warranties 
D)  Mortgage papers 
E)  Checking account statements D

Question 3

A person's net worth is computed by

Accepted Answer

A)  subtracting total liabilities from total assets. 
B)  deducting current living expenses from total assets. 
C)  adding assets and liabilities 
D)  subtracting assets from current liabilities. 
E)  adding liabilities and budgeted expenses. 
A)  subtracting total liabilities from total assets. 
B)  deducting current living expenses from total assets. 
C)  adding assets and liabilities 
D)  subtracting assets from current liabilities. 
E)  adding liabilities and budgeted expenses. A

Question 4

A brokerage statement is an example of a(n) ____________ record.

Accepted Answer

A)  investment 
B)  insurance 
C)  estate planning 
D)  tax 
E)  consumer purchase 
A)  investment 
B)  insurance 
C)  estate planning 
D)  tax 
E)  consumer purchase

Question 5

Total earnings of a person less deductions for taxes and other items is called

Accepted Answer

A)  budgeted income. 
B)  gross pay. 
C)  net worth. 
D)  total revenue. 
E)  take-home pay. 
A)  budgeted income. 
B)  gross pay. 
C)  net worth. 
D)  total revenue. 
E)  take-home pay.

Question 6

To calculate your net worth, you need to know your:

Accepted Answer

A)  annual income 
B)  assets and liabilities 
C)  monthly car loan cost 
D)  income after tax 
E)  pension contributions 
A)  annual income 
B)  assets and liabilities 
C)  monthly car loan cost 
D)  income after tax 
E)  pension contributions

Question 7

Which of the following would be considered a long-term liability?

Accepted Answer

A)  A charge account payment 
B)  A mortgage 
C)  An installment loan 
D)  An amount due for taxes 
E)  The amount due on a credit card 
A)  A charge account payment 
B)  A mortgage 
C)  An installment loan 
D)  An amount due for taxes 
E)  The amount due on a credit card

Question 8

Liquid assets refer to

Accepted Answer

A)  amounts that must be paid soon. 
B)  amounts on which taxes must be paid 
C)  total income available to a family for spending. 
D)  the value of investments. 
E)  items that are easily converted to cash. 
A)  amounts that must be paid soon. 
B)  amounts on which taxes must be paid 
C)  total income available to a family for spending. 
D)  the value of investments. 
E)  items that are easily converted to cash.

Question 9

To determine a person's solvency, which financial document should be consulted?

Accepted Answer

A)  Cash flow statement 
B)  Budget 
C)  Debt consolidation statement 
D)  Personal balance sheet 
E)  Credit report 
A)  Cash flow statement 
B)  Budget 
C)  Debt consolidation statement 
D)  Personal balance sheet 
E)  Credit report

Question 10

What types of financial records and documents should be kept in a safety deposit box?

Accepted Answer

Examples of items stored in a safe-depos

Question 11

Payments that do not vary from month to month are ____________ expenses.

Accepted Answer

A)  variable 
B)  current 
C)  fixed 
D)  discretionary 
E)  budgeted 
A)  variable 
B)  current 
C)  fixed 
D)  discretionary 
E)  budgeted

Question 12

Opportunity costs are not only associated with money management decisions involving long-term financial security.

Accepted Answer

A) True 
 B)False

Question 13

A common deduction from a person's paycheck is for

Accepted Answer

A)  interest. 
B)  unemployment 
C)  rent. 
D)  taxes. 
E)  current liabilities. 
A)  interest. 
B)  unemployment 
C)  rent. 
D)  taxes. 
E)  current liabilities.

Question 14

Ed Bostrom wants to reduce his fixed expenses. What action would be appropriate?

Accepted Answer

A)  Get a part-time job 
B)  Eat more meals at home than in restaurants 
C)  Find a place to live with a lower rent 
D)  Save more money for the future 
E)  Buy on credit for items that might cost more later 
A)  Get a part-time job 
B)  Eat more meals at home than in restaurants 
C)  Find a place to live with a lower rent 
D)  Save more money for the future 
E)  Buy on credit for items that might cost more later

Question 15

Take-home pay is a person's earnings after deductions for taxes and other items.

Accepted Answer

A) True 
 B)False

Question 16

Jennifer, a recent Concordia graduate, is struggling to pay off her $15,000 student loan. She has found employment with an international firm. Jennifer manages to balance her cash flows, but has only $500 in a chequing account to pay incoming bills. Her monthly after-tax cash inflows and expenses equal $2,000. What should be Jennifer's number one financial goal?

Accepted Answer

A)  Pay off her student loan immediately. 
B)  Start an emergency fund. 
C)  Contribute to an RRSP. 
D)  Purchase life insurance coverage. 
E)  Accumulate funds for a down payment on a home 
A)  Pay off her student loan immediately. 
B)  Start an emergency fund. 
C)  Contribute to an RRSP. 
D)  Purchase life insurance coverage. 
E)  Accumulate funds for a down payment on a home

Question 17

When it comes to savings, most Canadians

Accepted Answer

A)  have an adequate emergency fund. 
B)  use several different savings techniques. 
C)  find saving difficult. 
D)  keep substantial amounts in a regular savings account. 
E)  reduce the amount they save during their working life. 
A)  have an adequate emergency fund. 
B)  use several different savings techniques. 
C)  find saving difficult. 
D)  keep substantial amounts in a regular savings account. 
E)  reduce the amount they save during their working life.

Question 18

A five-year non-redeemable GIC is classified as a(n) _______________ asset on the personal balance sheet.

Accepted Answer

A)  liquid 
B)  investment 
C)  personal 
D)  business 
E)  marketable 
A)  liquid 
B)  investment 
C)  personal 
D)  business 
E)  marketable

Question 19

A budget deficit would result when a person's or family's

Accepted Answer

A)  actual expenses are less than planned expenses. 
B)  actual expenses are greater than planned expenses. 
C)  actual expenses equal planned expenses. 
D)  assets exceed liabilities. 
E)  net worth decreases. 
A)  actual expenses are less than planned expenses. 
B)  actual expenses are greater than planned expenses. 
C)  actual expenses equal planned expenses. 
D)  assets exceed liabilities. 
E)  net worth decreases.

Question 20

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Accepted Answer

A) True 
 B)False

A decrease in net worth would be the result of:

Which of the following financial documents would most likely be stored in a safety deposit box?

A person's net worth is computed by

A brokerage statement is an example of a(n) ____________ record.

Total earnings of a person less deductions for taxes and other items is called

To calculate your net worth, you need to know your:

Which of the following would be considered a long-term liability?

Liquid assets refer to

To determine a person's solvency, which financial document should be consulted?

What types of financial records and documents should be kept in a safety deposit box?

Payments that do not vary from month to month are ____________ expenses.

Opportunity costs are not only associated with money management decisions involving long-term financial security.

A common deduction from a person's paycheck is for

Ed Bostrom wants to reduce his fixed expenses. What action would be appropriate?

Take-home pay is a person's earnings after deductions for taxes and other items.

When it comes to savings, most Canadians

A five-year non-redeemable GIC is classified as a(n) _______________ asset on the personal balance sheet.

A budget deficit would result when a person's or family's

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Personal Financial Planning: An Introduction

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 2: Money Management Strategy: Financial Statements and Budgeting

A decrease in net worth would be the result of:

Which of the following financial documents would most likely be stored in a safety deposit box?

A person's net worth is computed by

A brokerage statement is an example of a(n) ____________ record.

Total earnings of a person less deductions for taxes and other items is called

To calculate your net worth, you need to know your:

Which of the following would be considered a long-term liability?

Liquid assets refer to

To determine a person's solvency, which financial document should be consulted?

What types of financial records and documents should be kept in a safety deposit box?

Payments that do not vary from month to month are ____________ expenses.

Opportunity costs are not only associated with money management decisions involving long-term financial security.

A common deduction from a person's paycheck is for

Ed Bostrom wants to reduce his fixed expenses. What action would be appropriate?

Take-home pay is a person's earnings after deductions for taxes and other items.

When it comes to savings, most Canadians

A five-year non-redeemable GIC is classified as a(n) _______________ asset on the personal balance sheet.

A budget deficit would result when a person's or family's

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Personal Financial Planning: An Introduction

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters