Question 1

During inflationary times,there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 2

After graduating from university,you obtain a job as a medical records technician.Your monthly salary is $2,000.Your monthly expenses are $1,600.Based on this information,what steps should you take to establish a long-term investment program?

Accepted Answer

The following steps for establishing an ...

Question 3

Which of the following is not a business periodical?

Accepted Answer

A)   Report on Business
B)   Business Week
C)   The Economist
D)   Canadian Banker
E)   Canadian BusinessF) A) and E)
G) B) and E)

Question 4

Studies show that investors are willing to run a greater risk to avoid a loss than to make a gain.In behavioural finance this is called loss aversion.

Accepted Answer

A) True 
 B)False

Question 5

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is not true?

Accepted Answer

A)   When establishing an investment program,you should begin by establishing your investment goals.
B)   When you are choosing an investment,you should examine the risk factor associated with each investment.
C)   When establishing an investment program,you should examine the potential return offered by different investment alternatives.
D)   Find a professional financial planner and leave the planning to the professional.
E)   Continue to evaluate the investments contained in your investment plan.F) B) and D)
G) A) and B)

Question 7

The amount put aside as an emergency fund should be equal to 1 to 3months of living expenses.

Accepted Answer

A) True 
 B)False

Question 8

A short-term investment objective is defined as one that will be accomplished within a period of less than two years.

Accepted Answer

A) True 
 B)False

Question 9

A Chartered Financial Planner must successfully complete ____________ courses of training by the Canadian Institute of Financial Planning.

Accepted Answer

A)   six
B)   eight
C)   one
D)   eighteen
E)   twoF) C) and D)
G) B) and C)

Question 10

Which of the following investments offers the least amount of growth potential?

Accepted Answer

A)   corporate bonds
B)   options
C)   mutual funds
D)   government bonds
E)   real estateF) C) and D)
G) B) and E)

Question 11

Which of the following is not a true statement?

Accepted Answer

A)   No one is going to make you save the money you need to start an investment program.
B)   To be useful,investment objectives must be specific and measurable.
C)   Investment goals must be tailored to the particular financial needs of the individual.
D)   Because investment objectives deal with the future,it is useless to plan more than five years in the future.
E)   A long-term investment objective involves a time period of five years or more.F) A) and E)
G) A) and B)

Question 12

Which of the following statements is not true?

Accepted Answer

A)   An investor seeking global diversification with less than $200,000 to invest should invest in global mutual funds.
B)   Changes in currency exchange rate may affect the return on your investment.
C)   Today,more and more investors are investing in stocks and bonds issued by foreign firms and global mutual funds.
D)   An investor in Canada cannot purchase shares in a foreign company.
E)   Because of international accounting rules,evaluating foreign investments is more difficult than evaluating investments in Canada.F) C) and D)
G) A) and B)

Question 13

An elective savings program is when an individual cuts back on spending for one to two months to obtain additional money for investment purposes.

Accepted Answer

A) True 
 B)False

Question 14

A good rule of thumb is to limit installment payments to ____________ percent of your net monthly income.

Accepted Answer

A)   8
B)   20
C)   25
D)   10
E)   30F) C) and E)
G) A) and D)

Question 15

Choose four of the investment alternatives presented in Chapter 10 and describe how the factors of safety,risk,income,growth,and liquidity affect that investment alternative.

Accepted Answer

Obviously,the answer to this q...

Question 16

Chi Min-Ho is 24 and has saved enough money to fund an adequate emergency fund.In addition,he has saved $5,600 that can be used to fund an investment program.He is single,has no dependents,and would like to retire when he is 60.Which of the investment factors listed below would be most important for an investor like Mr.Min-Ho?

Accepted Answer

A)   beta
B)   income
C)   growth
D)   risk
E)   liquidityF) D) and E)
G) A) and B)

Question 17

Dividends and interest income are taxed as long-term capital gains under the current tax laws.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following investments offers the greatest growth potential?

Accepted Answer

A)   bank accounts
B)   common stock
C)   corporate bonds
D)   government bonds
E)   option bondsF) A) and B)
G) A) and E)

Question 19

A designated financial planner has had at least two years of training in securities,insurance,taxes,real estate,and estate planning and has passed a rigorous examination.

Accepted Answer

A) True 
 B)False

Question 20

Desktop information services provide instantaneous access to real-time historical financial data,news and many other services.

Accepted Answer

A) True 
 B)False

Exam 10: Financial Planning With Life Insurance

Which of the following investments offers the least amount of growth potential?

Correct Answer
verified

Dividends and interest income are taxed as long-term capital gains under the current tax laws.

Correct Answer
verified

Which of the following statements is not true?

Correct Answer
verified

A Chartered Financial Planner must successfully complete ____________ courses of training by the Canadian Institute of Financial Planning.

Correct Answer
verified

A short-term investment objective is defined as one that will be accomplished within a period of less than two years.

Correct Answer
verified

Which of the following statements is not true?

Correct Answer
verified

During inflationary times,there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

Correct Answer
verified

Choose four of the investment alternatives presented in Chapter 10 and describe how the factors of safety,risk,income,growth,and liquidity affect that investment alternative.

Correct Answer
verified
Obviously,the answer to this q...
View Answer

An elective savings program is when an individual cuts back on spending for one to two months to obtain additional money for investment purposes.

Correct Answer
verified

Desktop information services provide instantaneous access to real-time historical financial data,news and many other services.

Correct Answer
verified

Which of the following is not a true statement?

Correct Answer
verified

Studies show that investors are willing to run a greater risk to avoid a loss than to make a gain.In behavioural finance this is called loss aversion.

Correct Answer
verified

The amount put aside as an emergency fund should be equal to 1 to 3months of living expenses.

Correct Answer
verified

A good rule of thumb is to limit installment payments to ____________ percent of your net monthly income.

Correct Answer
verified

Which of the following investments offers the greatest growth potential?

Correct Answer
verified

A designated financial planner has had at least two years of training in securities,insurance,taxes,real estate,and estate planning and has passed a rigorous examination.

Correct Answer
verified

Which of the following is not a business periodical?

Correct Answer
verified

Correct Answer
verified

After graduating from university,you obtain a job as a medical records technician.Your monthly salary is $2,000.Your monthly expenses are $1,600.Based on this information,what steps should you take to establish a long-term investment program?

Correct Answer
verified
The following steps for establishing an ...
View Answer

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

Correct Answer
verified

Exam 10: Financial Planning With Life Insurance

Which of the following investments offers the least amount of growth potential?

Correct AnswerverifiedShow Answer

Dividends and interest income are taxed as long-term capital gains under the current tax laws.

Correct AnswerverifiedShow Answer

Which of the following statements is not true?

Correct AnswerverifiedShow Answer

A Chartered Financial Planner must successfully complete ____________ courses of training by the Canadian Institute of Financial Planning.

Correct AnswerverifiedShow Answer

A short-term investment objective is defined as one that will be accomplished within a period of less than two years.

Correct AnswerverifiedShow Answer

Which of the following statements is not true?

Correct AnswerverifiedShow Answer

During inflationary times,there is a risk that the financial return on an investment will not keep pace with the rate of inflation.

Correct AnswerverifiedShow Answer

Choose four of the investment alternatives presented in Chapter 10 and describe how the factors of safety,risk,income,growth,and liquidity affect that investment alternative.

Correct AnswerverifiedObviously,the answer to this q...View AnswerShow Answer

An elective savings program is when an individual cuts back on spending for one to two months to obtain additional money for investment purposes.

Correct AnswerverifiedShow Answer

Desktop information services provide instantaneous access to real-time historical financial data,news and many other services.

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

Correct AnswerverifiedShow Answer

Studies show that investors are willing to run a greater risk to avoid a loss than to make a gain.In behavioural finance this is called loss aversion.

Correct AnswerverifiedShow Answer

The amount put aside as an emergency fund should be equal to 1 to 3months of living expenses.

Correct AnswerverifiedShow Answer

A good rule of thumb is to limit installment payments to ____________ percent of your net monthly income.

Correct AnswerverifiedShow Answer

Which of the following investments offers the greatest growth potential?

Correct AnswerverifiedShow Answer

A designated financial planner has had at least two years of training in securities,insurance,taxes,real estate,and estate planning and has passed a rigorous examination.

Correct AnswerverifiedShow Answer

Which of the following is not a business periodical?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

After graduating from university,you obtain a job as a medical records technician.Your monthly salary is $2,000.Your monthly expenses are $1,600.Based on this information,what steps should you take to establish a long-term investment program?

Correct AnswerverifiedThe following steps for establishing an ...View AnswerShow Answer

The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Obviously,the answer to this q...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The following steps for establishing an ...
View Answer

Correct Answer
verified