Money Management
Pre-Test Questions
Course Introduction
Money Management is a foundational course that equips students with essential skills to effectively handle personal finances in everyday life. The course covers key topics such as budgeting, saving strategies, credit usage, debt management, investment fundamentals, and understanding financial services. Through practical exercises and real-world scenarios, students learn to make informed decisions about spending, setting financial goals, managing risk, and planning for both short-term and long-term financial needs. By the end of the course, students will possess the knowledge and tools necessary to achieve financial stability and work toward future financial security.
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) If you put $1,000 in a saving account and make no further deposits, what type of calculation would provide you with the value of the account in 20 years?
A)future value of a single amount
B)simple interest
C)present value of a single amount
D)present value of a series of deposits
E)future value of a series of deposits
Answer: A
Q2) Your goal is to pay down your student loan in 3 years.The balance today is $9,434.If you are charged a rate of 9%, compounded monthly, what will be your monthly, end-of-period payment?
A)$527
B)$406
C)$300
D)$262
E)$193
Answer: C
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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) "Sharing the bills" is a budgeting strategy for two-income households where each partner contributes an equal amount into the pool.
A)True
B)False
Answer: False
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) The paymentitems that should be budgeted first are
A)variable expenses.
B)investment funds.
C)fixed expenses.
D)unplanned living expenses.
E)entertainment expenses.
Answer: C
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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) 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) To help you cope with taxes, common goals related to tax planning include all the following except:
A)Knowing the current tax laws and regulations that affect you
B)Maintaining complete and appropriate tax records.
C)Making employment and purchase decisions that leave you with the greatest after-tax cash flows and net wealth
D)Making investment decisions that leave you with the greatest after-tax cash flows and net wealth
E)Minimizing taxes
Answer: E
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Page 5
Chapter 4: Banking Services of Financial Institutions
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82 Verified Questions
82 Flashcards
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Sample Questions
Q1) When interest rates are falling, a person would be best served by
A)short term loans
B)short-term savings instruments.
C)same approach as if interest rates are rising.
D)variable-rate loans.
E)long term loans.
Q2) A $400 savings account that earns $15 interest in a year has a yield of ____________ percent.
A)6
B)15
C)4.75
D)3.75
E)6.5
Q3) If the annual rate is 8%, and the interest is compounded monthly, what is the effective annual rate?
A)8.00%
B)10.25%
C)10.38%
D)7.85%
E)8.30%
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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) The credit cardholders who pay off their balances in full each month are known as convenience users.
A)True
B)False
Q2) If your identity is stolen you should
A)Contact the fraud departments of each of the two credit bureaus.
B)Contact the creditors for any accounts that have been tampered with or opened fraudulently.
C)File a police report
D)Keep a copy of the police report
E)Take all of the actions indicated
Q3) If you cosign a loan,
A)you are not being asked to guarantee the debt.
B)it is not your legal responsibility to pay the debt.
C)you'll have to pay up to the full amount of the debt if the borrower does not pay.
D)the creditor must first try to collect from the borrower.
E)the creditor cannot garnish your wages.
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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) By evaluating your credit options, you can
A)reduce your finance charges.
B)reconsider your decision to borrow money.
C)discover a less expensive type of loan.
D)find a lender that charges a lower rate.
E)reduce your finance charges, reconsider your decision to borrow money, discover a less expensive type of loan, and find a lender that charges a lower rate.
Q2) Consolidation loans
A)have the advantage of a single interest rate on the full amount of your selected debts
B)usually have shorter terms than your initial debts
C)usually have lower interest rates because you are considered to be a lower risk for the lender
D)are best used for low or no interest debts
E)usually pay less overall when you extend the term of payment
Q3) Inflation decreases the purchasing power of money.
A)True
B)False
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Page 8
Chapter 7: The Finances of Housing
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) The purpose of an appraisal is to
A)estimate the current value of a home.
B)reduce the amount paid for property taxes.
C)qualify for a reduced mortgage rate.
D)eliminate the need for home insurance.
E)reduce the mortgage payments.
Q2) If you decide to purchase a condominium for potential benefits you are probably:
A)single parent.
B)young couple, no children.
C)couple, young children
D)young single
E)retired person.
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.
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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) The additional living expenses component of a home insurance policy is designed to
A)pay for temporary housing while your home is repaired.
B)cover damage to property while away from home.
C)reimburse a homeowner for damage done by a visitor.
D)pay for medical expenses of people injured on your property.
E)pay for repairs caused by fire or other hazards.
Q2) Hazard
A)is the chance that something may be lost.
B)is the cause of a possible loss.
C)increases the likelihood of loss through some peril.
D)is loss possibilities due to negligence resulting in bodily harm or property damage to others.
E)is a risk that carries a chance of either loss or gain.
Q3) Tenant's insurance would include coverage for all of the following except
A)additional living expense coverage.
B)personal liability.
C)building and other structures.
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) The principle of home insurance can be applied to the lives of persons.
A)True
B)False
Q2) In 2015 roughly how much did Canadians pay for health and insurance products?
A)20 billion
B)30 billion
C)40 billion
D)50 billion
E)90 billion
Q3) Ages 15 to 24 have what percentage of disabilities?
A)4.4%
B)6.5%
C)10.1%
D)16.1%
E)2.2%
Q4) Life insurance may be used as a way to provide liquidity at the time of death.
A)True
B)False
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Page 11
Chapter 10: Fundamentals of Investing
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) Which of the following investments would rank the highest with regard to safety?
A)real estate
B)common stock
C)preferred stock
D)GICs
E)antiques and collectables
Q2) All of the following statements are considered to be good advice for the potential investor before starting his or her personal investment program except:
A)Learn to live within your means.
B)Increase credit purchases and make installment payments in order to increase cash available for investing.
C)Provide adequate insurance protection.
D)Start an emergency fund.
E)Establish a line of credit.
Q3) When starting an investment program, you should participate in an elective savings program.
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) Anne owns 300 shares of Lily Industries.Suppose that for the last calendar quarter, Lily Industries paid $.30 a share.What is the total amount she received in her dividend cheque for this quarter?
A)0
B)$.30
C)$45.00
D)$90.00
E)$180.00
Q2) Because Xerox is a ____________ corporation, an investor can purchase stock with the help of an account executive through the secondary market.
A)private
B)public
C)general
D)institutional
E)securities
Q3) The Cumulative feature of a preferred stock is that a corporation may exchange, at its option, for a specified amount of money.
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) A convertible bond is a bond that can be exchanged, at the owner's option, for a specified number of shares of the corporation's common stock.
A)True
B)False
Q2) In what year were Canada Savings Bonds discontinued for sale?
A)2015
B)2016
C)2017
D)2018
E)2014
Q3) When a bond is selling for more than its face value, it is said to be selling at a: A)discount.
B)premium.
C)commission.
D)conservative value.
E)prospectus value.
Q4) Corporate bonds are a form of equity financing that does not have to be repaid. A)True
B)False
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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) Capital gain distributions result when you decide to sell shares in a mutual fund at a price higher than you paid.
A)True
B)False
Q2) What type of fund seeks to aim for income and safety?
A)Money market
B)Mortgage
C)Bond
D)Dividend
E)Balanced
Q3) 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
Q4) Typically, you must invest at least $250 to open a mutual fund account.
A)True
B)False
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Chapter 14: Retirement Planning
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) Which one of the following expenditures for retirees is likely to decrease?
A)food and medical care
B)clothing expenses
C)expenses for leisure activities
D)medical expenses
E)insurance
Q2) Your net worth is equal to your assets minus liabilities.
A)True
B)False
Q3) At age 65, the life expectancy of a man is 7 years.
A)True
B)False
Q4) Unless it is indexed, an annuity provides no protection from inflation.
A)True
B)False
Q5) Your spending patterns during retirement will probably not change.
A)True
B)False
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Chapter 15: Estate Planning
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) Which of these statements is false? Provincial family law _______________,
A)varies across Canada.
B)can have a significant impact on your estate planning.
C)might impact your capacity to order the disposal of your estate.
D)does not permit your will to be contested.
E)does not obligate the deceased to provide for family members who were not financial dependents at the time of death.
Q2) A holographic will should be witnessed by at least two persons.
A)True
B)False
Q3) Which type of will is usually prepared with an attorney's assistance?
A)informal will
B)formal will
C)holographic will
D)letter of last instruction
E)trustor's will
Q4) A codicil is a document that explains, adds, or deletes provisions in your existing will.
A)True
B)False
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