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Q1. The least risky, lower interest paying bonds are Select one: a. Crown corporation bonds. b. provincial bonds. c. federal government bonds. d. corporate AA

Q1. The least risky, lower interest paying bonds are

Select one:

a. Crown corporation bonds.

b. provincial bonds.

c. federal government bonds.

d. corporate AA bonds.

Q2.

If you are considering trading in a used car for your new one, it is best to

Select one:

a. not trade the car in, but rather sell it yourself over the internet.

b. tell the dealer right away so he can figure your trade-in credit against the purchase price of your new car.

c. not be too concerned about the value given, since dealers are required to give you at least Blue Book value.

d. negotiate the price of the new car before advising the dealer you have a trade-in.

Q3.

Purchasing which of the following items using debt will help reduce your tax bill?

Select one:

a. Stereo

b. Automobile

c. Stocks

d. Boat

Q4. Making extra mortgage payments does which of the following?

Select one:

a. Reduces the payment amount

b. Decreases equity

c. Increases cash flow

d. Reduces the length of the loan

Question 5

Which of the following would be the primary objective of investing?

Select one:

a. Earning a return

b. Maintaining liquidity

c. Choosing your investment types

d. Understanding your risk tolerance

Question 6

Given the following ABC Inc. bond information: $1000 par value, maturity 2023 Dec 22, semi-annual coupon 7.75%, price 105.50 and yield 7.4%. How much would a $1000 par value ATT Ltd. bond cost as of the day of this listing?

Select one:

a. $105.50

b. $740

c. $1000

d. $1055

Question 7

In which of the following scenarios would you favour leasing versus purchasing a car?

Select one:

a. The kilometers that you drive each year vary significantly and are hard to predict.

b. Repair expenses on the car are very low.

c. The car in question is one whose value depreciates rapidly.

d. The resale or trade-in value of the car will be high.

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