1. The most important thing to note about an annuity is a.that it reflects the power of simple interest. b.that the payment increases according to the discount rate. c.that the payment must not change over time. d.it reflects the growth of a single lump sum.

2. Under which of the following conditions must you file a personal income tax return? a.You will receive an income tax refund. b.You acquired capital property during the calendar year. c.You got married, separated, or divorced during the calendar year. d.You have to contribute to the Canada Pension Plan.

3. Planning to pay off a car loan in three years' time is classified as a.a medium-term goal. b.investment planning. c.a short-term goal. d.increasing cash flow.

4. Due to the high-interest rates charged, a vendor take-back mortgage is generally a worse option than a high ratio mortgage. Select one: True False

5. In deciding how much to contribute to your retirement savings, which of the following should you ignore? a.Other financial goals b.Anticipated inheritances c.Liquidity needs d.Current expenses