1)

A larger down payment will reduce the financing costs, but also:

Select one:

a.

create opportunity cost

b.

decrease your liquidity

c.

both A and B

d.

none of the above

2)

To invest is to assume risk, and you assume risk expecting to be compensated through return. The more risk assumed, the more the promised return. One way to lessen risk is to diversify investments. You may want to diversify in which of the following types of asset classes:

Select one:

a.

among different kinds of investments, reducing asset class risk.

b.

all of the answers are correct.

c.

between a cyclical and countercyclical investments, reducing economic risk.

d.

among different sectors of the economy,, reducing industry risks

3)

Which of the following statements about wills is INCORRECT:

Select one:

a.

It is your legal request for the distribution of your estate--the assets that remain after your debts have been satisfied.

b.

Wills always indicate who would have power of attorney.

c.

If you die without a will, and off-reserve, the laws of your province or territory of legal residence will dictate the distribution of your estate.

d.

A will should name an executor so it is clear who will administer the payment of your debts and the distribution of your remaining assets according to your wishes as expressed in your will

4)

A mortgage lender will assess one's ability to afford a mortgage by reviewing all of the following information EXCEPT:

Select one:

a.

gross debt service and total debt service

b.

proof of employment/income

c.

credit history

d.

last ten year's of employment history

5)

Which of the following statements is incorrect?

Select one:

a.

Tax exemptions are granted only to those individuals who meet the definition of Indian under the Act.

b.

According to Section 87 of the Indian Act, if goods are bought on, or delivered to, a reserve, they are tax exempt.

c.

Income earned by First Nations is eligible for tax exemption under SectIon 87 of the Indian Act and paragraph 81(1)(a) of the Income Tax Act.

d.

First Nations properties may never be taxed.