1-The CDIC

provides mortgage insurance on high-ratio mortgages

supervises financial institutions to ensure compliance with the bank act

provides insurance on eligible deposits at member institutions (up to $100k per person, per category)

protects life insurance policy holders in the event of a member company's failure to pay benefits

2-Which of the following is a non-discretionary expense?

property tax

gym membership

investments

travel

3-Your job as an advisor is to help clients minimize their risk by evaluating potential risks AND creating a plan to manage those risks. In order to evaluate potential risks, you must consider which 4 types/categories of risk?

premature death, aging & retirement, lost/destroyed items, loss of employment

loss control, risk transfer, risk financing, other

frequency, severity, loss prevention, loss reduction

personal, property, legal liability, other (including using a car and illness/injury while travelling)

4-During a meeting with your clients you help them to identify their goals and explain that these goals should be categorized as short term, medium term, and long term. Which of the 6 steps of the financial planning process are you demonstrating?

establishing a relationship

gathering data

analyzing data

recommending strategies

5-A 5 year GIC earns 5%/yr. Inflation is expected to be 2%/yr. What is the approximate expected (real) rate of return?

5%

2%

3%

7%

6-James works full time as a gardener. Since he can never be sure of getting work during the winter months, he worries that he could have trouble repaying his car loan. James would be a good candidate for creditor loss of job insurance.

True

False