Financial Literacy Exam Review
Course Introduction
Financial Literacy is designed to equip students with essential knowledge and skills to effectively manage personal finances. The course covers key topics such as budgeting, saving, credit management, debt reduction, investment basics, insurance, and understanding financial products. Through real-life scenarios and practical exercises, students will learn how to make informed financial decisions, set financial goals, and navigate the complexities of financial systems. By the end of the course, students will develop confidence in handling their finances and be prepared to make responsible choices for their financial future.
Recommended Textbook
Personal Finance 7th Canadian Edition by Jack Kapoor
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15 Chapters
1696 Verified Questions
1696 Flashcards
Source URL: https://quizplus.com/study-set/2458
Page 2
Chapter 1: Personal Financial Planning: An Introduction
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112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/48853
Sample Questions
Q1) Anne has a goal of "saving some money month for vacation next summer." Anne's goal lacks
A)measurable terms.
B)a realistic perspective.
C)specific actions.
D)a tangible end.
E)a time frame.
Answer: A
Q2) The amount of simple interest is determined by multiplying the amount in savings by the:
A)annual interest rate.
B)time period.
C)number of months in a year.
D)time period and number of months.
E)annual interest rate and the time period.
Answer: E
Q3) Present value is also referred to as compounding.
A)True
B)False
Answer: False
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Chapter 2: Money Management Strategy: Financial Statements
and Budgeting
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112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/48852
Sample Questions
Q1) Which of the following financial documents would most likely be stored in a home file?
A)Serial numbersof expensive items
B)Personal financial statements
C)Mortgage papers,title deed
D)Birth, marriage and death certificates
E)Guaranteed investment securities
Answer: B
Q2) A family with $70,000in assets and $22,000 of liabilities would have a net worth of:
A)$70,000.
B)$22,000.
C)$48,000
D)$92,000.
E)$41,000.
Answer: C
Q3) When one money management decision is selected, something else must be given up.
A)True
B)False
Answer: True
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Chapter 3: Planning Your Tax Strategy
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99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/48851
Sample Questions
Q1) Income that is not subject to income tax includes:
A)the GST/HST rebate.
B)the Canada child tax benefit
C)gifts.
D)lottery winnings.
E)GST/HST rebates, Canada Child Tax benefits, gifts, and lottery winnings are not subject to income tax.
Answer: E
Q2) A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:
A)receive a refund of $4,550.
B)owe $8,325.
C)owe $375.
D)receive a refund of $8,325.
E)receive a refund of $375.
Answer: C
Q3) Tax evasion refers to illegal actions to reduce one's taxes.
A)True
B)False
Answer: True
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Chapter 4: Banking Services of Financial Institutions
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82 Verified Questions
82 Flashcards
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Sample Questions
Q1) Which of these is not a characteristic of the compound interest bond?
A)various purchase options
B)denominations of $100 up to $10,000
C)interest paid on November 1 of each year
D)can be purchased by cash
E)cashable at any time for their face value
Q2) A personal cheque with guaranteed payment is called a
A)traveler's cheque.
B)bank draft.
C)certified cheque.
D)money order.
E)cashier's cheque.
Q3) What is a drawback of a money market account?
A)Low rate of return
B)Minimum deposit
C)Service charges
D)High minimum balance required
E)Not guaranteed
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Chapter 5: Introduction to Consumer Credit
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) A personal line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check.
A)True
B)False
Q2) Which of the following is the best rating to have on your credit report?
A)L0
B)L10
C)R0
D)R1
E)R9
Q3) Which of these is not a characteristic of Paypal?
A)Facilitates online auction payments.
B)Offers password protected accounts.
C)Allows use of credit cards.
D)Transfers funds in U.S.dollars.
E)No annual fees.
Q4) If you think your bill is wrong, you must notify your creditor in writing within 15 days after the bill was mailed.
A)True
B)False
Page 7
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Chapter 6: Choosing a Source of Credit: The Costs of Credit Alternatives
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113 Verified Questions
113 Flashcards
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Sample Questions
Q1) The most frequent type of bankruptcy or proposals in Canada in 2014 was:
A)Personal proposals
B)Business proposals
C)Personal bankruptcies
D)Business Bankruptcy
E)Government Bankruptcy
Q2) By current Canadian law, a lender in Canada can legally charge up to _________ per annum
A)10%
B)22%
C)28%
D)60%
E)there is no limit
Q3) If you declare bankruptcy, you, must continue to pay any alimony, child support, debts incurred through fraud and court costs.
A)True
B)False
Q4) Increasingly, the bankruptcy debtor is likely to be female.
A)True
B)False
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Chapter 7: The Finances of Housing
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Variable rate mortgages with a rate cap prevent the borrower from having to pay an interest rate significantly higher than the one in the original agreement.
A)True
B)False
Q2) A disadvantage of owing a co-operative is:
A)Higher utility expenses
B)Financial commitment
C)Difficult to sell
D)Limited remodeling
E)Limited mobility
Q3) The most commonly considered factor when selecting a home is the A)size of the home.
B)condition of the home.
C)location of the home.
D)local zoning laws.
E)current interest rates.
Q4) Ease of mobility is an advantage of owning a house.
A)True
B)False
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Chapter 8: Home and Automobile Insurance
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99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/48846
Sample Questions
Q1) Personal articles endorsement is an additional property insurance to cover the damage or loss of a specific item of high value.
A)True
B)False
Q2) ____________ provides coverage for the risk of financial loss due to legal expenses, medical expenses, lost wages, and other expenses associated with injuries caused by an automobile accident for which you were responsible.
A)Medical payments
B)No-fault insurance
C)Uninsured motorist's protection
D)Bodily injury liability
E)Comprehensive insurance
Q3) Most home insurance policies provide coverage for
A)earthquake damage.
B)flood damage.
C)an umbrella liability.
D)basic personal liability.
E)medical payments.
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Chapter 9: Life, Health, and Disability Insurance
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) Disability income insurance is probably the most coveted form of available insurance protection.
A)True
B)False
Q2) Disability income benefits begin on the 10<sup>th</sup>day you are disabled.
A)True
B)False
Q3) Which of the following items are required in calculating your life insurance need?
A)annual income and approximate expenses.
B)emergency fund.
C)financial needs.
D)liquid assets.
E)annual income and approximate expenses, emergency fund, financial needs, and liquid assets.
Q4) Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.
A)True
B)False
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Chapter 10: Fundamentals of Investing
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) The fees for investor services and newsletters generally range from ____________ a year.
A)$10 to $20, or free
B)$20 to $30, or free
C)$30 to $750, or free
D)$300 to $1,000, or free
E)over $1,,000, or free
Q2) An emergency fund is a certain amount of money that can be obtained quickly in case of immediate need.
A)True
B)False
Q3) If interest rates in the overall economy increase, what will happen to the market value of a corporate bond with a fixed interest rate?
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.
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Chapter 11: Investing in Stocks
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) To calculate the annual dividend yield, the annual dividend is divided by the stock's
A)current price.
B)historical average price.
C)future price.
D)beginning-of-year price.
E)end-of-year price.
Q2) Typically, growth companies pay out ____________ of their earnings in dividends to their stockholders.
A)over 95 percent
B)between 65 percent and 75 percent
C)between 50 and 65 percent
D)between 30 and 50 percent
E)less than 30 percent
Q3) You shouldn't be wary of any stocks that you learn about on financial bulletin boards, chat room, newsgroups or email.
A)True
B)False
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Chapter 12: Investing in Bonds
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) What is the approximate market value for a $1,000 corporate bond that pays 8 percent interest when comparable bonds are paying 9 percent interest?
A)$80
B)$90
C)$889
D)$1,000
E)$1,125
Q2) Which of the following investment characteristics would be favorable to an investor?
I Callable
II Convertible
III Cumulative dividends
IV Pledge of collateral
A)I, II and III are correct
B)II, III and IV are correct
C)I and III are correct
D)I, II, III and IV are all correct
E)I and II are correct
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Page 14
Chapter 13: Investing in Mutual Funds
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) A mutual fund that invests in common stocks and bonds with the primary objective of earning tax-advantaged income is called a(n) ____________ fund.
A)balanced
B)capital growth
C)dividend
D)income
E)money market
Q2) Which of the following is not a withdrawal option for a mutual fund?
A)The investor may withdraw a specified, dollar amount each investment period.
B)The investor may liquidate or "sell off" a certain number of shares each investment period.
C)The investor can withdraw a fixed percentage of asset growth.
D)The investor can withdraw all income that results from interest, dividends, and capital gains earned by the mutual fund during an investment period.
E)The investor must wait five years, and then can withdraw 10 percent of the asset growth each year until the fund is exhausted.
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15
Chapter 14: Retirement Planning
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) The Canada Pension Plan (CPP) includes disability, retirement, and survivor benefits.
A)True
B)False
Q2) Which statement is correct regarding retirement living expenses?
A)It is impossible to estimate your spending needs.
B)Your spending patterns will probably change.
C)You'll use a smaller amount of money for food, housing, and medical care.
D)Your spending patterns will probably not change.
E)The exact amount of money you'll need can be accurately predicted.
Q3) A CMHC program that helps low-income homeowners, or landlords who own units occupied by low-income tenants, pay for repairs to bring their properties up to minimum health and safety standards and helps owners modify their homes to make them accessible to those who are disabled is called __________________
A)Canada Pension Plan
B)Home Adaptations for Seniors' Independence Program
C)Old Age Security
D)Emergency Repair Program
E)Residential Rehabilitation Assistance Program
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Page 16
Chapter 15: Estate Planning
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95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/48839
Sample Questions
Q1) If you never married, you don't need to organize your personal and financial documents.
A)True
B)False
Q2) The least important characteristic of an executor is A)reliable
B)trustworthy,
C)responsible
D)organized
E)a family member
Q3) Upon your death, your beneficiary will meet people who offer specific types of assistance.These people will probably be:
A)strangers.
B)sympathetic.
C)courteous.
D)disinterested.
E)Your beneficiary will meet people, some of whom will be strangers, who are sympathetic, courteous and disinterested.
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