1)Which paymentfrequency, all else beingequal, will generally save you the most interest over the life of yourmortgage?

A.

Weekly

B.

Biweekly

C.

Semimonthly

D.

Accelerated biweekly

2)Lenders require Canada Mortgage and Housing Corporation insurance on high ratio mortgages. What is the primary purpose of thisinsurance?

A.

Disability insurance for the borrowers to make sure they can pay off the house if one of them can no longer work

B.

Life insurance for the borrowers to make sure they can pay off the house if one of them dies

C.

Insurance for the lender to protect their collateral in case the borrower defaults and the home has declined in value

D.

Insurance for the borrower in the event of foreclosure to compensate them for the full price they paid for the home

3)Which of the following is the best case for the need for third party liability insurancecoverage?

A.

You cause a car accident which disables a pedestrian.

B.

You cause a car accident and damage your Honda Civic.

C.

You cause a car accident and the injuries cause you to miss six months of work.

D.

You cause a car accident and destroy the otherdriver's Maserati.

4)Consider the loss from fire damage of furniture which cost$6000 thee years ago and has an expected life of ten years. This furniture would cost$9000 to purchase today. Under a replacement costpolicy, how much would the insurance company pay you for thisloss?

A.

$9000

B.

$6000

C.

$4200

D.

$6300

5)Which of the following is true of tenantsinsurance?

A.

Because premiums arelow, most people who need it haverenter's insurance.

B.

It will not cover you if a visitor sues you for an injury received in your apartment.

C.

You only need to buy it if you have possessions of considerable value.

D.It covers only your ownproperty, not the property of your landlord.