Question 1

Today,federal,provincial,and local governments and most corporations have a home page where you can obtain valuable information.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a true statement?

Accepted Answer

A)   Professionals and specialists in one field may not be qualified to provide the type of advice required to develop a thorough financial plan.
B)   The Canadian Association of Financial Planners allows people who have successfully fulfilled their training curriculum to use the designation Registered Financial Planner.
C)   The Canadian Institute of Financial Planning allows individuals to use the designation Chartered Financial Planner if they complete the necessary requirements.
D)   Most true financial planners help people achieve their financial goals.
E)   All stockbrokers are certified as financial planners.F) C) and E)
G) A) and B)

Question 3

An emergency fund should be deposited in a

Accepted Answer

A)   savings account at the highest available interest rate.
B)   six-month certificate of deposit.
C)   checking account.
D)   safe place at home.
E)   safe deposit box in a bank vault.F) B) and E)
G) C) and D)

Question 4

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

Accepted Answer

A)   market
B)   interest
C)   inflation
D)   business failure
E)   currentF) None of the above
G) C) and D)

Question 5

Jamie Lynn earns $40,000 a year.Her monthly expenses total $1,700.What is the minimum amount of money that Ms.Lynn should set aside in an emergency fund?

Accepted Answer

A)   $1,700
B)   $3,400
C)   $5,100
D)   $8,400
E)   $10,000F) A) and B)
G) None of the above

Question 6

If interest rates in the overall economy decrease,what will happen to the market value of a corporate bond with a fixed interest rate?

Accepted Answer

A)   The value of the bond will increase.
B)   The bond is worthless.
C)   The value of the bond will decrease.
D)   The value of the bond will not change.
E)   It is impossible to determine if the bond's value will increase or decrease.F) A) and D)
G) None of the above

Question 7

The average investor cannot afford to purchase much of the investment information available from the government.

Accepted Answer

A) True 
 B)False

Question 8

Preferred stock represents the most basic form of corporate ownership.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a true statement?

Accepted Answer

A)   Dividends are a distribution of money,stock,or other property to stockholders.
B)   Dividend income must be reported to the CCRA.
C)   Dividends are taxed as capital gains.
D)   Dividends are not taxed as ordinary income.
E)   Generally,the payer will send you or your broker a form that states how much dividend income you have received.F) All of the above
G) None of the above

Question 10

The potential return of any investment should be directly related to the risk that the investor assumes.

Accepted Answer

A) True 
 B)False

Question 11

Bad products or poor financial management may result in investors experiencing ____________ risk.

Accepted Answer

A)   business failure
B)   interest rate
C)   inflation.
D)   market
E)   incomeF) A) and B)
G) A) and C)

Question 12

Leveraged investing in common shares is expected to increase your net worth.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the most readily available source of information for an investor?

Accepted Answer

A)   the daily newspaper
B)   government publications
C)   corporate reports
D)   investor newsletters
E)   business periodicalsF) A) and B)
G) A) and C)

Question 14

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

Accepted Answer

A) True 
 B)False

Question 15

Capital gains and capital losses

Accepted Answer

A)   are not fully taxed.
B)   are subject to higher taxes than is income.
C)   are assets held for longer than two years.
D)   are assets held for longer than five years.
E)   are assets held for longer than ten years.F) C) and E)
G) A) and D)

Question 16

Which of the following is not a true statement?

Accepted Answer

A)   A corporation generally obtains equity capital from stockholders.
B)   A corporation can issue both preferred stock and common stock.
C)   When a corporation is experiencing financial problems,an investor should purchase common rather than preferred stock.
D)   Most corporations sell common stock to satisfy a large part of their financing needs.
E)   The most important priority a preferred stockholder enjoys is receiving cash dividends before common stockholders receive cash dividends.F) All of the above
G) C) and D)

Question 17

Under current tax laws,capital losses can be

Accepted Answer

A)   simply lost.
B)   used to offset capital gains.
C)   used to reduce your last year's tax amount.
D)   used to offset dividend income.
E)   used to offset interest and rental income.F) B) and C)
G) A) and B)

Question 18

Which of the following is not a true statement?

Accepted Answer

A)   When choosing an investment,it is not necessary to consider the risk factor.
B)   During inflationary times,there is a risk that the financial return on an investment will not keep pace with the rate of inflation.
C)   The interest rate risk associated with investments in bonds is the result of changes in the interest rates in the economy.
D)   The risk of business failure is associated with investments in common stock,preferred stock,and corporate bonds.
E)   The price of stocks,bonds,and other investments may fluctuate because of the behavior of investors in the marketplace.F) C) and D)
G) D) and E)

Question 19

Generally,options are not long-term investment techniques.

Accepted Answer

A) True 
 B)False

Question 20

Bondholders generally receive interest payments every five months.

Accepted Answer

A) True 
 B)False

Exam 10: Financial Planning With Life Insurance

Today,federal,provincial,and local governments and most corporations have a home page where you can obtain valuable information.

Correct AnswerverifiedShow Answer

Under current tax laws,capital losses can be

Correct AnswerverifiedShow Answer

Generally,options are not long-term investment techniques.

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

Correct AnswerverifiedShow Answer

Liquidity is the ease with which an asset can be converted to cash without a substantial loss in dollar value.

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

Correct AnswerverifiedShow Answer

Preferred stock represents the most basic form of corporate ownership.

Correct AnswerverifiedShow Answer

Capital gains and capital losses

Correct AnswerverifiedShow Answer

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

Correct AnswerverifiedShow Answer

The potential return of any investment should be directly related to the risk that the investor assumes.

Correct AnswerverifiedShow Answer

If interest rates in the overall economy decrease,what will happen to the market value of a corporate bond with a fixed interest rate?

Correct AnswerverifiedShow Answer

Leveraged investing in common shares is expected to increase your net worth.

Correct AnswerverifiedShow Answer

Which of the following is the most readily available source of information for an investor?

Correct AnswerverifiedShow Answer

An emergency fund should be deposited in a

Correct AnswerverifiedShow Answer

Bondholders generally receive interest payments every five months.

Correct AnswerverifiedShow Answer

Jamie Lynn earns $40,000 a year.Her monthly expenses total $1,700.What is the minimum amount of money that Ms.Lynn should set aside in an emergency fund?

Correct AnswerverifiedShow Answer

The average investor cannot afford to purchase much of the investment information available from the government.

Correct AnswerverifiedShow Answer

Bad products or poor financial management may result in investors experiencing ____________ risk.

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

Correct AnswerverifiedShow Answer

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