1.

Amanda opened a TFSA in 2019 and deposited $6000 in Jan 2019 and another $6,000 in Jan 2020 as well. She invested the funds in shares and was hopeful her investments will produce a capital gain. And, as luck would have it, by October 2020, Amandas shares were worth $17,000 just the amount she needed for her basement renovation. She withdrew the funds and renovated her basement. How much can Amanda deposit in her TFSA in 2021?

	a.	$23,000
	b.	$6,000
	c.	$17,000
	d.	$12,000

2.

Ming, a CFP professional has a busy financial planning practice. During the year, her assistant prepares documents and keeps records of client transactions. Ming reviews her assistants work to ensure it has been completed properly. Which principle in the FPSC code of ethics did Ming follow in reviewing the work?

	a.	Professionalism
	b.	Integrity
	c.	Diligence
	d.	Fairness

3.

All of the following are uses of the Statement of Net Worth except:

	a.	A detailed list of assets shows what you can draw on if you run into financial difficulty
	b.	The list and value of your assets show what you must manage.
	c.	The Net Worth helps you monitor the build-up of your assets
	d.	It provides a way of measuring progress in meeting the familys goals.

4.

Smith declares bankruptcy. Related to Bankruptcy, Smith:

1. Will be released from all his debts
2. Has liabilities greater than his assets and is considered insolvent
3. Will not be released from student loans and child support payments
4. Assigns his assets to a trustee in bankruptcy for orderly distribution

	a.	III & IV
	b.	II, III, & IV
	c.	II & III
	d.	I& II

5.

Corbin is working with his bank to arrange a loan to purchase new appliances. The amount his bank is willing to lend him depends on:

1. The value of Corbins assets
2. Corbins Gross debt service ratio
3. Corbins previous credit repayment history
4. The repayment amount of other debts Corbin has outstanding

	a.	I,III, & IV
	b.	II, III & IV
	c.	III & IV
	d.	I & II

6.

If you borrow $100 at 12 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay

	a.	$12
	b.	$100
	c.	$112
	d.	$120

7.

A personal cash flow statement presents

	a.	assets and liabilities.
	b.	income and payments.
	c.	amounts owed to others
	d.	amounts earned from savings.

8. Lilly is the only child of Ivan and Jill. Ivan and Jill would like to establish a RESP for Lilly now. Lilly turned 15 years old last month and has never been the beneficiary of a RESP. Related to RESP:

	a.	A minimum contribution of $2000 is required this year to qualify for CESG in future years
	b.	Lilly can be a beneficiary of a RESP but she no longer qualifies for the CESG
	c.	To qualify for CESG in future years, four contributions of $100 must be made this year
	d.	With a contribution of $2500 this year, Lillys RESP will receive the maximum CESG allowable

9. On March 1^st 2021, you deposit $1000 in Ever-Faithful bank, which pays you interest of 3.25% per annum. How much will you have on March 1 2022?

	a.	1036.47
	b.	1136.47
	c.	1032.50
	d.	1100.00

10.

A $50000 mortgage loan is written with a 20 year amortization period, a three-year term and an interest rate of 7.5% compounded semiannually. Payments are made monthly. Calculate the balance at the end of the three-year term.

	a.	$0
	b.	$46322.20
	c.	$12858
	d.	$399.30

11.

Nando invests $250 on the first of every month for three years. In three years, Nando's investment totals $10,000. Assuming monthly compounding, what nominal annual return did the investment earn?

	a.	10.7275%
	b.	7.1164%
	c.	6.7432%
	d.	7.5808%

12. Identify the correct statements. I. Shortening the term of a loan will reduce total interest charges. II. The interest component of each installment loan payment rises over time. III. A credit card holder who pays the minimum balance each month will remain in good standing.

	a.	I and II, only
	b.	II and III, only
	c.	I, II and III
	d.	I and III, only

13.

Tema arranged a debt consolidation loan with her bank. Related to this loan:

	a.	The bank will secure the loan with her assets
	b.	The interest rate on the loan will fluctuate with changes in prime rate
	c.	Tema is likely to get prime rate on the loan
	d.	Tema can repay a portion of the loan; then reuse the credit up to the approved limit

14.

Which of the following will not increase your net worth?

	a.	reducing value of assets owned.
	b.	decreasing spending.
	c.	reducing amounts owed.
	d.	increasing savings.

15.

Ricky and Jane have a family income of $150000. They set up a family RESP plan for their two children Paul and Saul. The plan has $60000 in contributions and $8000 in earnings and $14000 in grants. Which of the following is not true regarding RESP.

	a.	If Paul doesnt attend a post secondary education the earnings can be used for Saul
	b.	If Paul doesnt attend a post secondary education the grant can be used for Saul
	c.	If Paul and Saul do not attend a post secondary institution, $14000 will have to be returned.
	d.	If Paul and Saul do not attend a post secondary institution, Ricky and Jane will be taxed on $8000

16.

Regarding the TFSA, which of the following are true?

1. Withdrawals from TFSA are not taxable in the year of withdrawal.
2. The amount that is withdrawn from a TFSA is added back to ones TFSA contribution room on January 1st of the following year.
3. The TFSA must be converted to another retirement income fund in the year that one reaches age 71.
4. The TFSA does not impact ones eligibility for the government benefits

	a.	I,III & IV only
	b.	I,II & IV only
	c.	I & III only
	d.	II & IV only