Course Introduction
Managing Your Money Review
Questions
Managing Your Money is a practical course designed to equip students with essential personal finance skills for everyday life. The course covers topics such as budgeting, banking, saving, investing, credit management, debt reduction, and understanding financial products and services. Students learn how to set realistic financial goals, make informed spending decisions, and develop strategies to protect and grow their financial resources. The course also addresses the psychological aspects of money management and provides tools and frameworks for making sound financial choices throughout life's various stages.
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
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Sample Questions
Q1) Assume the following future values will be received at the end of each year.What is the interest rate if the future value of these amounts at the end of year 3 is equal to $2,006?
Yr.1 = $400; Yr.2 = $500; Yr.3 = $1,000
A)6.5%
B)6.8%
C)7.0%
D)8.0%
E)8.9%
Answer: D
Q2) Opportunity costs refer to time, money, and other resources that are given up when a decision is made.
A)True
B)False
Answer: True
Q3) Present value is also referred to as compounding.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Money Management Strategy: Financial
Statements and Budgeting
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Changes in the cost of living are
A)different in variousgeographic areas.
B)the same for different locations.
C)constant from month to month.
D)the same for all goods and services.
E)not a factor when preparing a budget.
Answer: A
Q2) The main purposes of personal financial statements are to:
A)summarize the value of the items that you own and the amountsthat you owe
B)track your cash inflowsby source and your outflows by type
C)identify strengths and weaknesses in your current financial situation and provide data for use in filing your income tax return or applying for credit
D)measure progress toward your financial goals
E)all of the above
Answer: E
Q3) Definite financial obligations are referred to as variable expenses.
A)True
B)False
Answer: False
4
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Chapter 3: Planning Your Tax Strategy
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99 Verified Questions
99 Flashcards
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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) The main purpose of taxes is to
A)create jobs
B)reduce the chances of inflation.
C)generate revenue for funding government programs.
D)discourage use of certain goods and services.
E)decrease competition from foreign companies.
Answer: C
Q3) There is a withholding on tax paid to Canadian residents on interest, dividends, rent and royalties.
A)True
B)False
Answer: False
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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) A cashier's cheque is what type of short term financial service?
A)Savings
B)Chequing
C)Credit Card
D)Cash availability
E)Investment
Q2) Savers should always attempt to obtain an interest rate that is less than the inflation rate.
A)True
B)False
Q3) The money market fund offered by investment companies is a highly liquid financial service.
A)True
B)False
Q4) The rate of return on a savings account is also referred to as A)liquidity.
B)compounding.
C)asset management.
D)insolvency.
E)yield.
Page 6
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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) Department stores and gasoline companies are good places to obtain your first credit card.
A)True
B)False
Q2) Perhaps the greatest disadvantage of using credit is the temptation to overspend.
A)True
B)False
Q3) What would your credit rating be if you pay between 60 and 90 days from the due date, or not more than three payments late?
A)R5
B)R2
C)R6
D)R3
E)R9
Q4) When you cosign a loan, you are being asked to guarantee this debt.
A)True
B)False
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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) Credit card co-branding has become popular with banks and industries.
A)True
B)False
Q2) Increasingly, the bankruptcy debtor is likely to be female.
A)True
B)False
Q3) The most commonly purchased type of credit insurance is credit life insurance.
A)True
B)False
Q4) Two key concepts that you should keep in mind when borrowing are the finance charge and the annual percentage rate.
A)True
B)False
Q5) If a bank charges you interest up front then this loan is called a _________ loan
A)compounded.
B)simple interest.
C)discount.
D)add-on.
E)installment.
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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) The term "sub-prime mortgage crisis" refers to
A)the difficulty new home owners have in negotiating a low interest rate with banks
B)obtaining a mortgage interest rate of 8 percent instead of 7 percent
C)the financial crisis precipitated in 2007 after a sharp increase in mortgage foreclosures
D)lower interest rates on shorter term mortgages than longer term mortgages
E)higher interest rates on shorter term mortgages than longer term mortgages
Q2) A lease only protects the rights of the tenant.
A)True
B)False
Q3) Ease of mobility is an advantage of renting.
A)True
B)False
Q4) A home equity loan is also referred to as a ____________ mortgage.
A)shared appreciation
B)graduated payment
C)growing equity
D)second
E)buy down
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Chapter 8: Home and Automobile Insurance
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) Auto insurance premiums are not affected by?
A)Make and style of car
B)Use of Vehicle
C)Color of vehicle
D)Driver classification
E)Provincial differences
Q2) High winds cause damage to trees, shrubs, and other plants.This insurance claim would be covered under the ____________ component of homeowner's insurance.
A)additional living expenses
B)personal property
C)building and other structures
D)personal liability
E)property damage
Q3) Tenant's insurance would include coverage for all of the following except
A)additional living expense coverage.
B)personal liability.
C)automobile theft.
D)personal property.
E)protection against financial loss due to damage.
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Page 10
Chapter 9: Life, Health, and Disability Insurance
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) Which of the following is the most common settlement option?
A)life income option.
B)limited installment payment.
C)lump-sum payment.
D)variable installment payment.
E)proceeds left with the company.
Q2) Which of the following is not a type of supplemental health insurance?
A)Dental
B)Auto
C)Vision
D)Travel
E)Long term care
Q3) Group health insurance covers all of your health insurance needs.
A)True
B)False
Q4) Universal life is a type of permanent life insurance
A)True
B)False
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11
Chapter 10: Fundamentals of Investing
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) What is step 7 of the steps for effective investment planning?
A)Determine the amount of money you need to obtain your goals.
B)Specify the amount of money you currently have available to fund your investments.
C)List different investments that you want to evaluate.
D)Reduce possible investments to a reasonable number.
E)Choose at least two different investments.
Q2) Which of the following is not a true statement?
A)No one is going to make you save the money you need to start an investment program.
B)To be useful, investment objectives must be specific and measurable.
C)Investment goals must be tailored to the particular financial needs of the individual.
D)Because investment objectives deal with the future, it is useless to plan more than five years in the future.
E)A long-term investment objective involves a time period of five years or more.
Q3) Bondholders generally receive interest payments every five months.
A)True
B)False
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Page 12
Chapter 11: Investing in Stocks
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) Daisy Diaz purchased 100 shares of Cameco Inc.at $40 dollars a share.The shares subsequently split three for one on December 31, 2004 and currently trade at $50 a share.If Daisy sells all of her shares, what will be his capital gain?
A)$11,000
B)$5,500
C)$4,000
D)$6,000
E)$6,500
Q2) A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n) ____________ stock.
A)defensive
B)cyclical
C)growth
D)income
E)blue-chip
Q3) Most speculators use a buy and hold technique.
A)True
B)False
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Page 13
Chapter 12: Investing in Bonds
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) Canada Savings Bonds are available in denominations of $300, $500, $1,000, $5,000, and $10,000.
A)True
B)False
Q2) The method used to pay bondholders their interest is the same regardless the type of bond.
A)True
B)False
Q3) The legal conditions for a corporate bond are described in the:
A)bond indenture.
B)bondholder's covenant.
C)corporate charter.
D)trustee contract.
E)bond debenture.
Q4) The lowest bond rating issued by the DBRS is:
A) A.
B) B.
C) C.
D) D.
E) Default.
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Chapter 13: Investing in Mutual Funds
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) A closed end fund has a
A)Finite size
B)Infinite size
C)Fluctuating size
D)Variable size
E)Open ended size
Q2) Income dividends and capital gain distributions are
A)exempt from taxation.
B)subject to federal taxation.
C)subject to federal taxation after the first $1,000.
D)subject to federal taxation after the first $2,000.
E)subject to federal taxation after the first $8,000.
Q3) What type of fund seeks to aim for capital gains and, as such, are invested almost entirely in common shares?
A)Money market
B)Mortgage
C)Bond
D)Dividend
E)Equity
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Page 15
Chapter 14: Retirement Planning
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) You can expect to spend about ________ years in retirement
A)5-10
B)11-15
C)16-20
D)21-25
E)26 or more
Q2) Your first step in retirement planning is to:
A)estimate your spending needs.
B)analyze your current assets and liabilities.
C)adjust your spending needs for inflation.
D)evaluate your planned retirement income.
E)determine if you'll have to work during retirement.
Q3) Which one(s) of the following is (are) misconceptions about retirement planning?
A)My expenses will drop when I retire.
B)My retirement will last only 15 years.
C)I can depend on government benefits.
D)I can depend on my company pension.
E)My expenses will drop when I retire, my retirement will last only 15 years, I can depend on government benefits, and my company pension are misconceptions.
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Page 16
Chapter 15: Estate Planning
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) If you die without a will, you die intestate.
A)True
B)False
Q2) Even if your assets such as life insurance, annuities, or RRSPs already have a named beneficiary, they will not be transferred independently of your will.
A)True
B)False
Q3) Which of the following statements is correct regarding wills?
A)Only married people need a will.
B)Only married people with dependents need a will.
C)Only the rich with a considerable estate needs a will.
D)Every adult needs a will.
E)Only senior citizens need a will.
Q4) If your assets such as life insurance, annuities, or RRSPs already have a named beneficiary, they will be transferred independently of your will.
A)True
B)False
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