41. What is the most important difference between an index mutual fund and an exchange traded fund (ETF)? a) ETFs are better managed. b) ETFs trade like stocks. c) There are more types of ETFs. d) ETFs have higher MERs. 42. Segregated funds a) do not offer a guarantee on your deposits when the contract matures. b) offer a guarantee on your deposits when the contract matures. c) are not insurance products. d) assets belong to the owners not the selling company. 43. Old Age Security benefits a) can be deferred five years which would increase your benefit by 36%%. b) are not subject to a "means test". c) can be claimed at age 60, but at a reduced amount. dj are a nontaxable benefit. 44. You are eligible for the full OAS pension if you have lived in Canada for at least a) 10 years since turning age 25. b) 25 years since turning age 18. c) 40 years since turning age 18. d) 40 years. 45. For each resident of Canada, their CPP entitlement is calculated based on their a) number of years as working adult resident of Canada with income under $70 000. b) dollar value of their contributions and the number of years they contributed to the plan. number of years up to age 65 as an adult resident of Canada. d) income earned above the YMPE each year. 46. For retirees, the most important difference between CPP and OAS is that a) Only OAS is indexed for inflation. b) Only OAS is based on income earned each year relative to the YMPE. c) Only CPP can be taken early at a reduced amount. d) Only CPP can be deferred to receive an increased monthly amount. 47. A defined-benefit pension plan guarantees a) the employee a specific amount of income when he retires. b) that the employee will only be terminated for specific reasons. c) that the employee has specific kinds of insurance. d) that the employee will contribute to a retirement plan. Pope Weil 14 FINAL EXAM ENCE1 125 - Introduction to Finance