A downward announcement of the interest rate is a bad news for share market but a good news for those holding fixed income securities.

Select one:

a. TRUE

b. FALSE

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The beginning balance in the 5th year for a retirement plan under capital conservation approach with inflation factor of 4% and rate of return of 5% is RM12,283,515.

Select one:

a. FALSE

b. TRUE

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The impact of changes in any variables will be similar in terms of direction for both capital liquidation and capital conservation approaches.

Select one:

a. TRUE

b. FALSE

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Holding other variables remains constant, an increase in the inflation rate will cause a decrease in the total lump sum need for retirement.

Select one:

a. FALSE

b. TRUE

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The risk profile of a client refers to his set of behavior when he participates in investment.

Select one:

a. FALSE

b. TRUE

Uncertainty simply means the lack of certainty or sureness of an event.

Select one:

a. TRUE

b. FALSE

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If Ringgit Malaysia is stronger than US Dollar, a company importing soya beans from USA will have lower Cost of goods sold, hence more profit.

Select one:

a. TRUE

b. FALSE

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There are three main variables required in computing the total lump sum need for retirement.

Select one:

a. TRUE

b. FALSE

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A nominal rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects.

Select one:

a. TRUE

b. FALSE

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Under the liquidation method, it is necessary to assume that all retirement funds will be liquidated over the remaining life expectancy of the client.

Select one:

a. TRUE

b. FALSE