1. Examples of Earning Assets are: Mutual Funds, Securities, etc

Real Estate & Housing investments Cars, Antique investments 2. What is sinking fund? A one-time expense incurred to settle obligations Putting aside equal payments to pay off future obligations Putting equal payments which cannot be recovered

3. Residual Value is: The price of an asset at the time of purchase The remaining life of an asset The difference between purchase and sale price None of the above.

4. Loan-to-Value ratio is the maximum amount/value of the asset, which a person is willing to take as loan. True False

5. The Personal Financial Planning life Cycle shows that the line on chart is linear and not curve True False

6. What of the following is true for an Annuity? Series of unequal payments for definite period of time Series of equal payment for indefinite period of time Series of equal payments for definite period of time

7. Which of the following is NOT true for Demand Deposit? Account holder can withdraw funds anytime he/she wishes Funds can be withdrawn via cheque only

Account is maintained at Financial Institution It is a type of chequing account

8 .Which of the following DOES NOT affect quality of life/standard of living? Clean Air, green/natural environment Pollution and Traffic

9. Time Value of Money refers: A. Purchasing Power B. Financial Assets A C. Fixed Assets Saved OnlyA& C OnlvB&AOnly B & C All A B & C

10. In six- step financial planning process, we develop and implement budgets to monitor and control progress towards goal and they remain same throught the life.

True

False

11. Future value of an annuity is: A measure of the amount to which a one-time investment grow at a given interest rate A measure of the future cashflows which are earned by investing current money at given interest rate A measure of the amount to which series of equal payments grow at a given interest rate

12. Assessed Value of a house is the price:

At which the house was constructed Market price of the house

13. "A type of insurance that protects funds on deposit against failure of the institution." Is a definition of: Deposit insurance DO Fund Insurance Property Insurance 14. Gross Debt Services and Total Debt Services ratios are similar in a way that they indicate a person's affordability of loans in relation to his income and expenses. True False

15. Closing Costs are incurred when: Loan is taken from Bank Loan is Re-imbursed to bank House is refinanced 16. Which of the following is NOT type of financial planning? A. Education planning B. Appliance purchase C. Salary Only B& C

House of refinanced

I do not have two other options for these thank you. 17. There is inverse relationship between average propensity to consume and high income level. True False 18. Most of the businesses succeed because they borrow more than their income True

False

19. Another type of Savings Account is Regular Chequing Account. True False 20. Interest rates offered on Chequing account and savings account are usually same True False 21. Walk-Away Lease is called walk-away because you can cancel the lease any time by giving back full remaining payments and taking the ownership of asset. True False 22. Which of the following institution is owned by its members: Credit Unions Trust Companies Non-Depository Financial Institutions Internet Banks Banks 23. Which of the following is Not a strategy to build a Nest Egg? Changing your lifestyle as you accumulate more wealth Watching the KIND of returns coming into your account Setting up a payroll deduction None of the options.

24. Before opening an account, which of the following factor is not considered true: Frequency of compounding

Effective Interest Rates Remaining balance on which interest is earned 25. Which of the following asset provides best protection against Inflation? Stock House Canadian T-bills 26. Mutual Funds, Stock aren't part of liquid assets True False 27. Non-Cashable Guaranteed Investment Certificates (GICs) are more flexible and pay higher interest than Cashable GICs True False 28. There is no difference between Effective interest rate & Compound interest rate? True False

29. Which of the following is an attribute of MMMF (Money Market Mutual Funds): Offers yield more than interest rates on savings account Invest funds in high-yield long term securities Pools funds from both big and small investors Only offered by the big banks and Canadian government 30. Both "medium of exchange" and "amount of satisfaction" are integral to financial planning process True False 31. Which of the following instrument is considered safe heaven for savings & Investment in Canada? High-rate savings account Canadian T-Bills Canadian Saving bonds High return GICs 32. Wrap Accounts are only offered by Securities Dealers True False

33. In order to secure a financial future, which of the following actions should be taken: Maintain Liquidity Spending > Income Spending without budget 34. Guaranteed investment Certificates are; Issued by Financial Institutions in exchange for a minimum deposit Usually issued from.1 year up to 5+ years Easy to buy but difficult to hold due to changing interest rates 35. Which of the following is not true for debt? Debt helps in generating Steady income Debt helps in controlling cost of capital (WACC) Debt is good as long as return on investment is less than cost of investment 36. Depreciation is the loss in value of an Asset and it is a non-recurring cost True False 37. Canadian Premium bonds (PB) are very different from Canadian Saving Bons (CB) because not only they offer higher interest rate but they are also more flexible than CSBs True False

38. If the Cost of Debt is higher than return on investment, then debt is good? True False 39. Few of the EFTS' advantages are: No Float Round-the-clock service

I dont have two other options for this questions 40. Which of the following is not a way to secure financial future? You should only invest in one type of high earning asset You must make a budget You must maintain liquidity 41. What is Two Income Family? Income generated by two same real estate assets Income generated by two high return assets family Income generated by two partners 42. Capitalized Cost is the total cost for purchasing an asset True

False

43. The beauty of AMA accounts is that it following services at one place: A. Borrowing, Investing B. Lending, Investing C. Chequing, Investing Only B & C AIl A, B & C Only A & C Only A & B

44. What is Marginal Tax Rate? The tax we pay on Perishable goods The Tax that we pay on additional dollar of taxable income The Tax that we pay on additional purchase of Investment instruments 45. Personal Financial Planning only helps to define financial goals and not to develop appropriate strategies ti meet them? True False 46. There is room for insurance consideration while laying out financial actions as part of financial planning model? True False 47. While formulating framework for financial, we must ONLY consider future financial needs for maximum satisfaction. True False 48. The main difference between Harmonized Sales Tax and General Sales Tax is the base of taxable goods at tax is applied. True False

49. Which of the following benefits are not offered by debt? Risk Mitigation Diversification Increases Cost of Capital 50. Apart from compounding, the difference Effective Interest Rate and Simple Interest Rate is that the latte fails to capture the time value of money. True False