Q1. What is the primary problem with dying intestate?

Select one:

a. It only matters if there is no surviving spouse.

b. Your estate will flow to the government.

c. An administrator will be appointed to distribute the estate according to law.

d. Medical personnel will be responsible for decisions about your care when they do not know you.

Q2.

The retirement benefit you receive from a defined-contribution plan will be based on

Select one:

a. the performance of how you invest your own and your employer's contributions.

b. the performance of how your employer invests the contributions.

c. a certain percentage of your income in the later years of employment.

d. a formula that guarantees a set amount to support a modest retirement lifestyle.

Question 3

Given the bank rate of 3.5%, and investment A that will pay 10%. What is the risk premium?

Select one:

a. 6.5 percent

b. 7.5 percent

c. 13.5 percent

d. 0 percent

Question 4

Which mortgage option is best in the following scenario? The Wongs are purchasing their first home for $250,000 and financing with a $200,000 mortgage. They expect interest rates to stay the same for the next seven years at least, expect no increase in their incomes, and prime rate is three percent. Their primary goal is to pay down the principal as quickly as they can, and they can afford monthly mortgage payments of $1200.

Select one:

a. A five-year closed convertible VRM (variable rate mortgage) at prime

b. A five-year closed fixed rate mortgage at five percent

c. A five-year open VRM at prime plus one percent

d. A seven-year closed fixed mortgage at six percent

Question 5

A disadvantage of term insurance is that

Select one:

a. you can only exchange your cash value for other insurance.

b. it becomes more expensive when you renew it.

c. the cash value portion of the premium is larger than other forms.

d. coverage ceases if you develop a life threatening illness.

Question 6

For each Canadian, or resident of Canada, their CPP payments are calculated on their

Select one:

a. income earned between the YBE and YMPE.

b. total employment earnings.

c. total income taxes paid.

d. income earned below the YBE.