Money Management Test Bank
Course Introduction
Money Management is a practical course designed to equip students with essential financial skills for personal and professional success. The course covers key topics such as budgeting, saving, investing, managing credit, understanding loans, and planning for major life expenses. Through real-world examples and hands-on activities, students will learn how to make informed financial decisions, set achievable financial goals, and develop strategies for building long-term financial security. This course is ideal for anyone looking to gain confidence in managing their money and securing their financial future.
Recommended Textbook
Personal Finance 4th Canadian Edition by Jack Kapoor
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15 Chapters
1246 Verified Questions
1246 Flashcards
Source URL: https://quizplus.com/study-set/3273
Page 2
Chapter 1: Personal Financial Planning in Action
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74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/64981
Sample Questions
Q1) The major function of a financial plan is to:
A) reduce taxes.
B) increase savings.
C) achieve financial goals.
D) improve your credit rating.
E) obtain adequate insurance protection.
Answer: C
Q2) Which of the following is usually considered a long-term financial strategy?
A) creating a budget
B) using savings to pay off a loan early
C) renting an apartment to save for the purchase of a home
D) investing in a growth mutual fund to accumulate retirement funds
E) purchasing life insurance to cover current needs of dependents
Answer: D
Q3) How do interest rates influence financial planning?
Answer: Higher interest rates make buying on credit more expensive,higher interest rates make saving and investing more attractive and discourage borrowing.
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Chapter 2: Money Management Skills
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75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/64974
Sample Questions
Q1) Insolvency is the inability to pay debts by the due date,because liabilities exceed the value of assets.
A)True
B)False
Answer: True
Q2) Current liabilities differ from long-term liabilities based on
A) the amount owed.
B) the financial situation of the creditor.
C) the interest rate charged.
D) when the debt is due.
E) current economic conditions.
Answer: D
Q3) Leveraged investing in common shares is expected to increase your net worth.
A)True
B)False
Answer: True
Q4) Personal records current budget,cheque book(s)and bank statements.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Taxes in Your Financial Plan
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65 Verified Questions
65 Flashcards
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Sample Questions
Q1) An expense that would be included in the deductions of a taxpayer is
A)travel to work.
B)life insurance premiums.
C)union and professional dues.
D)a driver's license fee.
E)tuition fees.
Answer: C
Q2) Deductions are amounts that a taxpayer is allowed to deduct from taxable income.
A)True
B)False
Answer: False
Q3) Jack sold $20,000 worth of stocks that were purchased one year ago for $15,000.He is in a 22% tax bracket.Jack's capital gains taxes are:
A)$500.
B)$550.
C)$1,100.
D)$2,500.
E)$4,400.
Answer: B
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Page 5
Chapter 4: Financial Services: Savings Plans and Payment Accounts
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Credit unions frequently offer lower loan rates than other financial institutions.
A)True
B)False
Q2) All financial institutions are able to process customer deposit and withdrawal transactions.
A)True
B)False
Q3) When preparing a bank reconciliation,interest earned on your chequing account is subtracted from the bank statement balance.
A)True
B)False
Q4) Briana Legett expects interest rates to decline over the next few months.To maximize her earnings she should use a(n):
A)regular savings account.
B)interest-bearing checking account.
C)five-year certificate of deposit.
D)six-month certificate of deposit.
E)money market fund
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Chapter 5: Consumer Credit: Advantages, Disadvantages,
Sources, and Costs
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/64971
Sample
Questions
Q1) The 25-to 44-age group currently represents about 30 percent of the population but holds nearly ____________ percent of the debt outstanding.
A) 80
B) 70
C) 60
D) 50
E) 40
Q2) A home equity loan is a good source of credit for daily expenses.
A)True
B)False
Q3) The debt-to-equity ratio is calculated by dividing your total liabilities by your net worth.
A)True
B)False
Q4) Cobranding is the linking of a credit card with a business trade name offering "points" or premiums toward the purchase of a product or service.
A)True
B)False
Q5) What are the two basic types of credit? Give examples of both.
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Chapter 6: Consumer Purchasing Strategies and Wise
Buying of Motor Vehicles
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87 Verified Questions
87 Flashcards
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Sample Questions
Q1) Credit card cobranding has become popular with banks and industries.
A)True
B)False
Q2) The most expensive loans available are provided by finance companies,retailers,and banks through credit cards.
A)True
B)False
Q3) If creditors give you no credit for payments made during the billing period,this is called the
A) APR method.
B) discount method.
C) previous balance method.
D) adjusted balance method.
E) average daily balance method.
Q4) Banks often encourage you to make the maximum payment.
A)True
B)False
Q5) By evaluating your credit options,you can reduce your finance charges. A)True
B)False
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Chapter 7: Selecting and Financing Housing
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70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/64969
Sample Questions
Q1) Which of the following would increase the speed of equity growth for a homebuyer?
A) making a down payment of 10 percent instead of 20 percent
B) obtaining a mortgage interest rate of 9 percent instead of 8 percent
C) obtaining a 15-year mortgage instead of a 30-year mortgage
D) making larger deposits to the escrow account
E) making smaller deposit to the escrow account
Q2) 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
Q3) A lease does not protect tenants from rent increases during the term of the lease.
A)True
B)False
Q4) One significant drawback of home ownership is financial uncertainty.
A)True
B)False
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9
Chapter 8: Home and Automobile Insurance
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65 Verified Questions
65 Flashcards
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Sample Questions
Q1) Which of the following are not covered by tenant's insurance?
A) medical expenses for injuries to visitors
B) fire damage of the building's roof
C) additional living expenses
D) accidental damage to the property of others
E) cost of legal action due to personal liability
Q2) Wind damage occurs to your car costing $1000 to repair.If you have a $300 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?
A) $300
B) $1300
C) $500
D) $700
E) $800
Q3) Increased liability insurance is available with an umbrella policy.
A)True
B)False
Q4) What factors affect the cost of home insurance?
Q5) Which type of automobile insurance is usually considered to be most important?
Page 10
Q6) What events are commonly covered in a homeowner's insurance policy?
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Chapter 9: Health and Disability Income Insurance
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) Because you are young and healthy now,you may overlook the very real need for A) Disability income insurance.
B) health insurance.
C) Dental insurance.
D) vision care insurance.
E) liability insurance.
Q2) Which of the following statements is true of long-term-care insurance?
A) Canadians are generally unaware of its existence.
B) It covers you when you have a disability that leaves you unable to take care of yourself.
C) It covers you when you have a disability and may need help at home with daily activities.
D) Canadians are generally unaware of its existence and it covers you when you have a disability that leaves you unable to take care of yourself.
E) Canadians are generally unaware of its existence; it covers you when you have a disability that leaves you unable to take care of yourself; and it covers you when you have a disability and may need help at home with daily activities.
Q3) What is disability income insurance? What are the sources of disability income?
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Chapter 10: Financial Planning With Life Insurance
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93 Verified Questions
93 Flashcards
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Sample Questions
Q1) A decrease in the value of stocks,bonds,or other investments may cause investors to experience ____________ risk.
A) market
B) interest rate
C) business failure
D) inflation
E) income
Q2) The fees for investor services and newsletters may range between $30 and $750 a year.
A)True
B)False
Q3) 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
Q4) The belief that something must be of superior value because we own it,is known as the endowment effect.
A)True
B)False
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Chapter 11: Investing Basics and Evaluating Bonds
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111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/64979
Sample Questions
Q1) Which of the following is not a true statement?
A) An investment bank is a financial firm that assists organizations in raising funds.
B) A large corporation often uses an investment bank to sell and distribute a new stock issue.
C) Analysts for the investment bank examine the corporation's financial position to determine whether the new stock issue is financially sound.
D) If the investment bank is satisfied that the new stock issue is a good risk,it will buy the stock and hold it for at least one year.
E) The investment bank resells a new stock issue to its customers-commercial banks,insurance companies,pension funds,mutual funds,and the general public.
Q2) Why would an investor favor a common share over a preferred share?
A) To obtain a bigger potential capital gain.
B) To obtain repayment of the face value at maturity.
C) To obtain a fixed dividend.
D) To obtain a fixed coupon payment.
E) To obtain a variable dividend
Q3) Describe the steps involved in a typical margin transaction.
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Page 13
Chapter 12: Investing in Stocks
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90 Verified Questions
90 Flashcards
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Sample Questions
Q1) Because bonds are considered debt financing that must be repaid at maturity,the corporation's financial stability has little effect on the bond's value between the issue date and the maturity date.
A)True
B)False
Q2) The price at which a dealer is willing to sell a government security is known as the ____________ price.
A) bid
B) asked
C) contract
D) government
E) adjusted
Q3) Generally,interest on corporate bonds is paid every
A) six months.
B) three months.
C) month.
D) nine months.
E) year.
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Chapter 13: Investing in Mutual Funds
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) Index funds are bought at beginning-of-day prices.
A)True
B)False
Q2) To purchase shares in an open-end fund,you may use four options: regular accounts,voluntary savings plans,contractual savings plans and reinvestment plans.
A)True
B)False
Q3) An investment company sponsoring a mutual fund must furnish shareholders a prospectus each year.
A)True
B)False
Q4) A mutual fund that requires investors to make regular purchases over a specified period of time is called a A) regular account.
B) voluntary savings plan.
C) contractual savings plan.
D) minimum withdrawal plan.
E) free contract plan.
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Page 15
Chapter 14: Starting Early: Retirement and Estate Planning
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) Some retirement planning experts suggest that you start retirement planning while you are:
A) in school.
B) in college.
C) in graduate school.
D) middle-aged.
E) still employed.
Q2) Your spending patterns during retirement will probably not change.
A)True
B)False
Q3) Some experts suggest starting estate planning while you are still in school.
A)True
B)False
Q4) The Canada Pension Plan (CPP)includes disability,retirement,and survivor benefits.
A)True
B)False
Q5) What is the most popular personal retirement plan? Should everyone have one? Explain.
Q6) What is the importance of retirement planning?
Page 16
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Chapter 15: Daily Spending Diary
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) Which one of the following statements is true about estate planning?
A) Many people don't give a single thought to preparing for death.
B) It is always easy to plan for your family's financial security in the event of your death.
C) Most people do a lot to provide for those who will survive them.
D) Most people give meticulous attention to estate planning.
E) Estate planning is for the rich only
Q2) Making any changes on the face of your will can invalidate it.
A)True
B)False
Q3) In estate planning,if you are married:
A) you don't need much estate planning.
B) your estate planning is rather easy.
C) only your spouse should be concerned about estate planning.
D) your situation becomes more complex,and the need for orderliness and clarity becomes greater.
E) your will takes care of most of estate planning problems.
Q4) Every adult should have a written will.
A)True
B)False
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