Money Management Question
Bank
Course Introduction
Money Management is a course designed to equip students with essential skills and knowledge to effectively manage personal finances and make informed financial decisions. Topics covered include budgeting, saving, investing, credit management, debt reduction, and financial planning. Students will learn practical strategies for setting financial goals, understanding banking services, navigating credit scores, and evaluating investment options, all aimed at fostering financial literacy and promoting long-term financial well-being.
Recommended Textbook
Personal Finance 7th Canadian Edition by Jack Kapoor
Available Study Resources on Quizplus
15 Chapters
1696 Verified Questions
1696 Flashcards
Source URL: https://quizplus.com/study-set/2458
2
Chapter 1: Personal Financial Planning: An Introduction
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/48853
Sample Questions
Q1) Your goal is to accumulate in 4 years $5,000.If you can earn a rate of 4%, compounded monthly, what will be your end of month monthly payment need to be to reach this goal?
A)$96
B)$104
C)$124
D)$262
E)$300
Answer: A
Q2) A major activity in the planning component of financial planning is
A)selecting insurance coverage.
B)evaluating investment alternatives.
C)gaining occupational training and experience.
D)allocating current resources for spending.
E)establishing a line of credit.
Answer: D
Q3) Developing financial goals is the first step in the financial planning process.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Money Management Strategy: Financial
Statements and Budgeting
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/48852
Sample Questions
Q1) A personal cash flow statement presents income and outflows of cash for a given time period, such as a month.
A)True
B)False
Answer: True
Q2) A person's net worth would increase as a result of
A)decreased value on investments
B)reduced earnings.
C)increased spending for current living expenses.
D)increased value of personal possessions.
E)increased amount owed to others.
Answer: D
Q3) Payments that do vary from month to month are ____________ expenses.
A)fixed
B)current
C)variable
D)luxury
E)budgeted
Answer: C
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Planning Your Tax Strategy
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/48851
Sample Questions
Q1) Taxable income is the total earnings of a person.
A)True
B)False
Answer: False
Q2) A tax ____________ is an amount subtracted directly from the amount of taxes owed.
A)credit
B)exemption
C)deduction
D)exclusion
E)shelter
Answer: A
Q3) "Grossed-up" Canadian dividends are multiplied by what amount in order to determine the level of taxable dividends?
A)15%
B)18.97%
C)45%
D)50%
E)60%
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Banking Services of Financial Institutions
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/48850
Sample Questions
Q1) All financial institutions are able to process customer deposit and withdrawal transactions.
A)True
B)False
Q2) If the annual rate is 2% and inflation is 3%, then the approximate real rate of return is:
A)5.00%
B)3.00%
C)1.00%
D)- 1.0%
E)0%
Q3) A trust is a safe place for people to make large deposits for maximum security
A)True
B)False
Q4) What is a drawback of a Guaranteed Investment Certificate?
A)Low rate of return
B)Minimum deposit
C)Service charges
D)High minimum balance required
E)Not guaranteed
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Introduction to Consumer Credit
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/48849
Sample Questions
Q1) If there is incorrect information in your credit file,
A)you should sue the credit bureau.
B)you must sue the merchant who denied the credit.
C)the credit bureau must reinvestigate and modify or remove inaccurate data.
D)pray that the credit bureau goes bankrupt.
E)you cannot dispute the derogatory information.
Q2) By paying cash for a purchase, you
A)forgo the opportunity to keep the cash in an interest-bearing account.
B)always get a cash discount.
C)can build a better credit rating.
D)get better personal service from store employees.
E)have a better selection of goods than if you use credit.
Q3) Which of the following is considered to be a consumer loan?
A)Debit card
B)Credit loan
C)Personal line of credit
D)Overdraft protection
E)Mortgage loan
To view all questions and flashcards with answers, click on the resource link above.
7
Chapter 6: Choosing a Source of Credit: The Costs of Credit Alternatives
Available Study Resources on Quizplus for this Chatper
113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/48848
Sample Questions
Q1) If creditors add finance charges after subtracting payments made during the billing period, this is called the
A)adjusted balance method.
B)discount method.
C)previous balance method.
D)APR method
E)average daily balance method.
Q2) What is the maximum weekly amount allowed for a student loan that the Federal government will fund, as per your text?
A)$140
B)$175
C)$200
D)$210
E)$250
Q3) What is the interest rate on a Canada Student Loan if the prime rate is 5%?
A)2.5%
B)5%
C)7.5%
D)10%
E)12.5%
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Finances of Housing
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/48847
Sample Questions
Q1) If your CMHC premium percentage is 1.8%, what is the maximum loan to value ratio?
A)65%
B)75%
C)80%
D)85%
E)90%
Q2) Assuming semi-annual compounding and a quoted mortgage rate of 9 percent, what are the effective annual rate and the effective monthly rate?
A)4.5 percent, 1 percent
B)9 percent, 0.75 percent
C)9.2 percent, 0.736 percent
D)18.81 percent, 0.75 percent
E)18.81 percent.0.736 percent
Q3) A split-rate mortgage helps to reduce interest rate risk.
A)True
B)False
Q4) Real estate agents will provide you with services using an hourly rate.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Home and Automobile Insurance
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/48846
Sample Questions
Q1) Property risks
A)are the chance that something may be lost.
B)are the cause of a possible loss.
C)are legally defined as uninsurable.
D)are the uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards.
E)are loss possibilities due to negligence resulting in bodily harm or property damage to others.
Q2) Peril is defined as
A)the refusal by an insurance company to pay for the covered loss.
B)the cause of risk.
C)the cause of a possible loss.
D)an uncertainty as to loss.
E)risk
Q3) 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
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Life, Health, and Disability Insurance
Available Study Resources on Quizplus for this Chatper
134 Verified Questions
134 Flashcards
Source URL: https://quizplus.com/quiz/48845
Sample Questions
Q1) Critical illness insurance does not usually cover __________________.
A)cancer
B)stroke
C)HIV/AIDS
D)blindness
E)organ transplant
Q2) Life insurance needs may be used to:
A)Go on vacation
B)Provide a retirement income
C)Buy a car
D)Buy a home
E)Retire
Q3) Which of the following is not a 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.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Fundamentals of Investing
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/48844
Sample Questions
Q1) A type of investment that combines and invests the funds of many investors and manages it with a professional manager is called a(n)
A)chequing account.
B)securities exchange.
C)guaranteed investment certificate.
D)mutual fund.
E)option fund.
Q2) During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.
A)True
B)False
Q3) Statistical averages show trends and direction, but they do not pinpoint the actual value of a specific investment.
A)True
B)False
Q4) A line of credit is a short-term loan that is approved before the money is actually needed.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Investing in Stocks
Available Study Resources on Quizplus for this Chatper
141 Verified Questions
141 Flashcards
Source URL: https://quizplus.com/quiz/48843
Sample Questions
Q1) The price-earnings ratio is calculated by dividing the earnings per share of a stock by its fair market value.
A)True
B)False
Q2) What type of stock tends to stay stable during declines in the economy.
A)Blue chip
B)Growth
C)Defensive
D)Large Cap
E)Small Cap
Q3) Capital gains yield is the stock's appreciation in value divided by its end-of-year stock price.
A)True
B)False
Q4) Convertible preferred stock may be exchanged, at the shareholder's option, for a specified number of shares of common stock.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Investing in Bonds
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/48842
Sample Questions
Q1) In reality, there is no guarantee that convertible bondholders will convert to common stock even if the price of the common stock does increase.
A)True
B)False
Q2) Corporate bonds are a form of equity financing that does not have to be repaid.
A)True
B)False
Q3) Treasury bills are issued in minimum units of $10,000 with maturities that range from 10 to 30 years.
A)True
B)False
Q4) What financially independent firm acts as the bondholder's representative?
A)Auditor
B)Lawyer
C)Trustee
D)Executor
E)Law enforcement
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Investing in Mutual Funds
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/48841
Sample Questions
Q1) Which of the following statements is false?
A)Investors purchase mutual funds for diversification.
B)Investors purchase mutual funds because of professional management.
C)Investors who purchase mutual funds are guaranteed a higher rate of return than a comparable investment in stocks or bonds.
D)Professional mutual fund managers work for an investment company.
E)Even the best portfolio managers sometimes make mistakes.
Q2) Which of the following statements is true?
A)Real estate funds offered by insurance companies as an alternative to conventional mutual funds.
B)Bond funds seek to achieve a high level of income and liquidity.
C)Mortgage funds have a higher risk then bond funds.
D)Ethical funds are typically guided by moral criteria.
E)Segregated funds are often considered a subset of specialty funds.
Q3) For many individuals, mutual funds are not a good choice.
A)True B)False
Q4) Typically, you must invest at least $1,000 to open a mutual fund account.
A)True B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Retirement Planning
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/48840
Sample Questions
Q1) Which of the following is not a public pension plan in Canada?
A)CPP
B)QPP
C)OAS
D)RRSP
E)ETA
Q2) You can determine your net worth by
A)subtracting your assets from your liabilities.
B)subtracting the value of your home from the mortgage balance.
C)adding your liabilities and assets.
D)subtracting your liabilities from your assets.
E)subtracting your expenses from your income.
Q3) The exact amount of money you will need in retirement can be predicted accurately. A)True
B)False
Q4) Federal programs are the major source of public retirement pensions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Estate Planning
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/48839
Sample Questions
Q1) A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.
A)testamentary
B)living
C)general
D)formal
E)insurance
Q2) Making any changes on the face of your will does not invalidate it.
A)True
B)False
Q3) A person who assumes the responsibilities of providing the children with personal care and managing the estate for them is called a(n):
A)beneficiary.
B)executor.
C)trustee.
D)guardian.
E)executrix.
To view all questions and flashcards with answers, click on the resource link above.
Page 17