Money Management Practice Questions
Course Introduction
Money Management is a foundational course that introduces students to the key principles and practical strategies necessary for effectively managing personal finances. Topics covered include budgeting, saving, investing, debt management, credit scores, and financial planning. Through real-world case studies and financial tools, students learn how to set financial goals, create and manage budgets, understand consumer credit, and make informed decisions regarding major purchases and investments. This course prepares individuals to build strong financial habits and make responsible choices that support both short-term needs and long-term financial well-being.
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) Household size is a major influence on personal financial planning decisions.
A)True
B)False
Answer: True
Q2) Decreased consumer spending will usually cause:
A)lower consumer prices.
B)reduced employment levels.
C)lower tax revenues.
D)lower interest rates.
E)higher employment levels.
Answer: B
Q3) Higher prices are likely to result from:
A)increased spending by consumers.
B)increased production by business.
C)lower interest rates.
D)lower demand by consumers
E)an increase in the supply of a product.
Answer: A
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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) Liquid assets refer to
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.
Answer: E
Q2) An organized system of financial records provides a basis for:
A)Planning and measuring financial progress.
B)Handling long term business affairs
C)Handling moderate term business affairs
D)Analyzing opportunity costs
Answer: A
Q3) Investments are funds set aside for:
A)Short term needs
B)Long term needs
C)Both short and long term needs
D)Moderate term needs
E)Emergencies
Answer: B
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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) Which of the following is an example of a tax credit?
A)mortgage interest
B)amounts withheld for social insurance
C)individual retirement account contributions
D)caregiver and medical expenses
E)net business income
Answer: D
Q2) What is the least common type of tax filing error, of those listed?
A)Mathematical errors, such as adding or subtracting amounts incorrectly.
B)Calculating and claiming provincial tax credits incorrectly.
C)Claiming GST/HST credits incorrectly by using incorrect spousal income amounts.
D)Claiming incorrect amounts as RRSP contributions.
E)Forgetting to claim the age amount, or claiming it incorrectly.
Answer: E
Q3) Deductions are amounts that a taxpayer is allowed to deduct from taxable income.
A)True
B)False
Answer: False
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5
Chapter 4: Banking Services of Financial Institutions
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82 Verified Questions
82 Flashcards
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Sample Questions
Q1) A regular savings account usually offers a higher rate of return to savers than other savings plans.
A)True B)False
Q2) Mortgage and loan companies specialize principally in home mortgages and long-term loans.
A)True B)False
Q3) If the annual rate is 10% and inflation is 4%, then the approximate real rate of return is:
A)14.00%
B)4.00%
C)6.00%
D)6.80%
E)7.00%
Q4) The more frequent the compounding, the less a person will earn on a savings account.
A)True B)False
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Chapter 5: Introduction to Consumer Credit
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138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/48849
Sample Questions
Q1) What is not consideration of capacity (as part of the 5 Cs of credit)?
A)Salary
B)Previous credit
C)Place of occupation
D)Income reliability
E)Other sources of income
Q2) The larger the debt-to-equity ratio, the riskier the situation is for lenders and borrowers.
A)True
B)False
Q3) There are very few valid reasons for using credit.
A)True
B)False
Q4) College students are not a prime target for credit card issuers.
A)True
B)False
Q5) Most creditors rely heavily on borrowers' bank reports when considering loan applications.
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) Government of Canada student loans
A)are available to all full-time and part-time post-secondary students regardless of financial need
B)are offered only in Ontario and Quebec
C)are not required to be repaid
D)are the same as student grants
E)program is called the Canada Student Loans Program
Q2) Credit costs usually do not vary.
A)True
B)False
Q3) The least expensive loans are available from car dealers, appliance stores, department stores.
A)True
B)False
Q4) Increasingly, the bankruptcy debtor is likely to be female.
A)True
B)False
Q5) Credit card co-branding has become popular with banks and industries.
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) Refinancing of a mortgage is recommended when
A)interest rates rise.
B)interest rates fall.
C)the escrow account balance declines.
D)two or more points are required by the lender at the time of closing.
E)refinancing costs are low
Q2) 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.
Q3) Which of the following is typically excluded from a lease agreement?
A)the conditions under which the landlord may enter the apartment.
B)the tenant's right to sublet the rental unit.
C)A list of utilities, appliances etc that are included in the rental amount.
D)the penalty for missing rental payments.
E)restrictions regarding specific activities (e.g.remodeling).
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9
Chapter 8: Home and Automobile Insurance
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.
A)replacement value
B)actual cash value
C)umbrella
D)endorsement
E)personal articles endorsement
Q2) Which of the following is considered personal property for home insurance coverage?
A)an automobile
B)a garage
C)a house
D)appliances
E)trees and shrubs
Q3) Starting a small business that may or may not succeed is an example of speculative risk.
A)True
B)False
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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) The easy method of estimating life insurance requirements is remarkably useful. A)True
B)False
Q2) The price that a company charges for a life insurance policy is affected by A)the company's cost of doing business.
B)inflation.
C)the seasons.
D)provincial regulations.
E)federal regulations.
Q3) Disability benefits begin on the first day you are disabled.
A)True
B)False
Q4) Canadians are amongst the most life-insured people in the world. A)True
B)False
Q5) Universal life is a type of permanent life insurance
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 money obtained from selling corporate bonds
A)is obtained from lenders.
B)is obtained from the owners of the business.
C)is obtained from employee stock option programs.
D)does not have to be repaid.
E)has been allocated to retirement programs.
Q2) Which of the following is not a true statement?
A)It is estimated that there are over 100 million Internet users worldwide.
B)There is a wealth of investment information available, but most small investors cannot afford to use it.
C)You can obtain current price information for stocks, bonds, and mutual funds by using the Internet.
D)A search engine is a research tool that helps you move through a menu system until you find the information you want.
E)Both government and businesses provide individuals with investment information.
Q3) Generally, options are not long-term investment techniques.
A)True
B)False
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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) Jamie Presner purchased 100 shares of Bank of Montreal for $86.00 Jamie also paid $50 commission.What was the total purchase price for this transaction?
A)$50.00
B)$86.00
C)$8,650.00
D)$8,289.50
E)$860.00
Q2) A long-term investment technique used by investors to purchase stock without paying a commission to a broker is called
A)dollar cost appreciation.
B)direct investment plan.
C)unregulated transaction.
D)regulated transaction.
E)over-the-counter transaction.
Q3) The price-earnings ratio is not affected by an increase or decrease in the firm's earnings.
A)True
B)False
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13
Chapter 12: Investing in Bonds
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/48842
Sample Questions
Q1) The yield to maturity takes into account the relationship among a bond's maturity value and
A)the time to maturity.
B)the current price.
C)the dollar amount of interest.
D)the corporate rate
E)the time to maturity, the current price, the dollar amount of interest, and the corporate rate.
Q2) The only way an investor can make money on a bond investment is to hold the bond until maturity.
A)True
B)False
Q3) The interest rate for a $1,000 bond is 6 percent.If comparable bonds are paying 8 percent, what is the approximate market value for the 6 percent bond?
A)$1,000
B)$800
C)$750
D)$600
E)$500
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Page 14
Chapter 13: Investing in Mutual Funds
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122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/48841
Sample Questions
Q1) In a newspaper quotation, NAV stands for "not accessible value."
A)True
B)False
Q2) A mutual fund that invests in investment grade corporate and government debt is called a(n) ____________ fund.
A)balanced
B)equity
C)segregated
D)income
E)bond
Q3) A load fund is a mutual fund in which investors pay a commission every time they sell or buy shares.
A)True
B)False
Q4) In an open-end fund, investors pay a commission (as high as 8.5 percent) every time they purchase or sell shares.
A)True
B)False
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Page 15
Chapter 14: Retirement Planning
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99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/48840
Sample Questions
Q1) The people who are in the best position to save are:
A)middle-aged.
B)young adults in their 20s.
C)people in their 30s.
D)teenagers.
E)elderly.
Q2) Which of the following is not a public pension plan in Canada?
A)CPP
B)QPP
C)OAS
D)RRSP
E)ETA
Q3) In an RRSP, contributions are tax-deductible and earnings accumulate tax free.
A)True
B)False
Q4) Your first step in retirement planning is to analyze your current assets and liabilities.
A)True
B)False
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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) At death, it is necessary to _____________.
A)to file a final (terminal) tax return.
B)pay estate taxes in Canada.
C)report only the earned income of the deceased up to the date of death.
D)report only the partial value of any registered assets.
E)ensure your survivors have money.
Q2) A hand written will is known as what type of will?
A)Holographic
B)Formal
C)Informal
D)Notarial
E)Living
Q3) Making any changes on the face of your will can invalidate it.
A)True
B)False
Q4) At death, it is necessary to deregister any registered assets, such as RSPs or RIFs.
A)True
B)False
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