Course Introduction
Personal Finance
Textbook Exam Questions
Personal Finance introduces students to essential concepts and practical strategies for managing individual and household financial resources effectively. Topics include budgeting, saving, investing, credit and debt management, insurance, retirement planning, and the basics of taxes. Through real-world examples and interactive activities, students learn how to make informed financial decisions, set achievable financial goals, and develop lifelong habits that promote financial well-being and stability. This course lays the foundation for understanding and navigating the complex world of personal finance in a rapidly changing economic landscape.
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
Page 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) The first step of the financial planning process is to
A)develop financial goals.
B)implement the financial plan.
C)determine your current personal and financial situation.
D)evaluate and revise your actions.
E)create a financial plan of action.
Answer: A
Q2) Present value computations are also called discounting.
A)True
B)False
Answer: True
Q3) Economic Factor: Consumer spending measures?
A)The value of the dollar; changes in inflation
B)The demand for goods and services by individuals and households
C)The cost of money; the cost of credit when you borrow; the return on your money when you save or invest
D)The dollars available for spending in our economy
E)The number of people without employment who are willing and able to work
Answer: B
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) Janice spends a total of $3,300 a month to cover all living expenses.Which of the following would represent the maximum suggested acceptable emergency fund?
A)Zero
B)$3,300
C)$9,9500
D)$19,800
E)$6,600
Answer: D
Q2) Which of the following financial documents would most likely be stored in a safety deposit box?
A)Company pensioninformation
B)Personal financial statements
C)Warranties
D)Birth, marriage and death certificates
E)Checking accountstatements
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
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) Richard sold $20,000 worth of stocks that were purchased one year ago for $18,000.He is in a 22% tax bracket.Jack's capital gains taxes are:
A)$220.
B)$440.
C)$2,000.
D)$110.
E)there is no tax on capital gains.
Answer: A
Q2) Taxable income is used to compute a person's A)exemptions.
B)income tax.
C)deductions.
D)tax credit.
E)exclusions.
Answer: B
Q3) A tax credit is an amount subtracted directly from the amount of taxes owed. A)True
B)False
Answer: True
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) 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%
Q2) Time deposits are more commonly referred to deposits made to savings accounts and investment certificates.
A)True
B)False
Q3) The convenience of using a financial institution with 24-hour banking frequently requires a trade-off with A)safety.
B)personal service.
C)growth of savings.
D)liquidity.
E)a lower rate of return.
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) The debt-to-equity ratio is calculated by dividing your total liabilities by your net worth.
A)True
B)False
Q2) In a closed-end credit, loans are made on a continuous basis and you make at least partial payment.
A)True
B)False
Q3) If your debt-to-equity ratio is about ½, you have reached the upper limit of debt obligations.
A)True
B)False
Q4) You should sign your new credit cards as soon as they arrive. A)True
B)False
Q5) The use of credit can provide up to a 45 day "float."
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 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) Which of the following offer the least expensive loan?
A)finance companies
B)banks
C)savings and loan associations
D)parents or family members
E)loan sharks
Q3) Both consumer proposals and declarations of insolvency through an assignment in bankruptcy are considered an easy way out of debt.
A)True
B)False
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) Home improvements may contribute more to the value of the home than the cost of the renovations.
A)True B)False
Q2) The total debt service ratio is your monthly mortgage payment and other outstanding debts as a percentage of your gross monthly income.
A)True B)False
Q3) Negotiating a purchase price for a home usually involves an offer and counteroffers.
A)True B)False
Q4) Real estate agents will provide you with services using an hourly rate. A)True B)False
Q5) Closing costs are the fees and charges owed when making the decision to refinance a home.
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) Not driving to work is an example of what risk management technique?
A)Risk avoidance
B)Risk reduction
C)Risk assumption
D)Risk education
E)Self-insurance
Q2) 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
Q3) Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $200 today.What amount will the insurance company pay?
A)$100
B)$150
C)$200
D)$350
E)$300
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) Disability benefits begin on the first day you are disabled.
A)True
B)False
Q2) In most cases, your employer pays part or all of the cost of disability income protection plan.
A)True
B)False
Q3) The main difference between whole life insurance and critical illness insurance is that critical illness insurance
A)has a higher approval rating
B)is cheaper
C)is more difficult to understand
D)pays the proceeds before the policyholder's death
E)has limits on the amount of insurance you can purchase
Q4) Disability income insurance is probably the most coveted form of available insurance protection.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 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) What is step 6 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) The belief that something must be of superior value because we own it, is known as the endowment effect.
A)True
B)False
Q3) For an investor who wants to speculate, which of the following investments would be appropriate?
A)red-chip stocks
B)derivatives
C)utility stocks
D)corporate bonds
E)preferred stock issues
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 beta is an index that compares the risk associated with a specific stock issue with the risk of the stock market in general.
A)True
B)False
Q2) A very safe investment that generally attracts conservative investors is called a(n) ____________ stock.
A)penny
B)cyclical
C)growth
D)income
E)blue-chip
Q3) 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
Q4) Preferred stocks are often referred to as "middle" investments. A)True
B)False
Page 13
To view all questions and flashcards with answers, click on the resource link above.
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) Assume that you purchased a $1,000 Mobil Corporation bond that pays 8.25 percent interest.What is the amount of interest you would receive each six months?
A)$4.125
B)$8.25
C)$82.50
D)$41.25
E)$1,000
Q2) Based on the Dominion Bond Rating Service a bond with a rating of AA has what type of credit?
A)Highest
B)Superior
C)Good
D)Adequate
E)Speculative
Q3) A registered bond is a bond whose ownership is registered in the owner's name by the issuing company.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) Most Canadian mutual funds sponsored by the Canadian chartered banks
A)charge an annual management expense ratio (MER)
B)are no-load funds
C)Both charge an annual management expense ratio (MER) and are no-load funds
D)Neither charge an annual management expense ratio (MER) nor are no-load funds
Q2) Which of the following statements is false?
A)Most investors in mutual funds will tell you that the most important consideration in evaluating a mutual fund is long-term performance.
B)It is possible to compare a fund's long-term performance with the performance of the TSE 300 stock index.
C)The length of time a fund's manager has been managing a fund should not be considered when evaluating a fund because the investment company has the right to replace a fund manager.
D)Long-term performance should not be the only factor that you consider in evaluating a mutual fund.
E)Information on a fund's long-term performance is available in its prospectus and in other sources of financial information.
To view all questions and flashcards with answers, click on the resource link above.
Page 15
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 statement is correct regarding retirement living expenses?
A)It is impossible to estimate your spending needs.
B)The exact amount of money you'll need is impossible to predict.
C)You'll use a smaller amount of money for food, housing, and medical care.
D)Your spending patterns will probably not change.
E)The exact amount of money you'll need can be accurately predicted.
Q2) A CMHC program that helps homeowners pay for minor modifications, such as adding handrails and grab bars is called __________________
A)Canada Pension Plan
B)Home Adaptations for Seniors' Independence Program
C)Old Age Security
D)Emergency Repair Program
E)Residential Rehabilitation Assistance Program
Q3) In an RRSP, contributions are tax-deductible and earnings accumulate tax free.
A)True
B)False
Q4) The exact amount of money you will need in retirement can be predicted accurately.
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) Which of the following is not a potential tax that may be incurred at death?
A)income tax due to deemed disposition rules
B)provincial probate taxes
C)estate taxes
D)U.S.estate taxes on U.S.assets
E)Canadian estate taxes on U.S.assets
Q2) In what type of ownership is each individual considered to own a proportionate share for tax purposes with only your share being included in your estate?
A)tenancy by default
B)tenancy by the entirety
C)tenancy in common
D)joint tenancy
E)tenants by birth
Q3) A spousal trust can be classified as either an inter vivos trust or a testamentary trust.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.