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Study Resources (Finance)

15.1   True/False 1) The quality and timing of your retirement depends mainly on the quality of your employer's retirement plan. 2) Old Age Security provides sufficient income to support the lifestyles of most individuals. 3) To be eligible for Old Age Security retirement benefits, you will need to have worked in Canada for.
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31) The retirement benefit you receive from a defined-contribution plan will be based on A) a certain percentage of your income in the later years of employment. B) a formula that guarantees a set amount to support a modest retirement lifestyle. C) the performance of how you invest your own and your employer's.
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15.2   Multiple Choice 1) Your Old Age Security retirement benefits are determined primarily by the amount of your A) average annual earnings. B) OAS contributions. C) time as resident of Canada. D) lifetime income tax contributions. 2) Payments made to you by Old Age Security are based on your A) residency in Canada older than 16. B) the.
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21) The document that describes funeral preferences and indicates where key financial records are kept is called the letter of last rites. 22) Minor changes to a will can be made with a simple document called a codicil. 23) Probate is the legal process that ensures that assets are distributed and guardians.
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51) To monitor your financial plan, you should A) store all legal documents in one place. B) store all financial documents in different places. C) store all financial documents in one place. D) store some financial documents in one place. 52) You will need to revise your financial plan periodically to A) meet your financial goals. B).
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31) Final income taxes may be assessed by A) the federal government only. B) provincial governments only. C) both federal and provincial governments. D) foreign governments only. 32) Final taxes on an estate are A) assessed on all property owned. B) charged upon transfer to the beneficiaries. C) based on the total value of the estate. D) income tax,.
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16.4   Essay 1) List the following steps in order: A)Assets are sold. B)Estate taxes are paid. C)A copy of the will is provided. D)The executor files forms in a local probate court. E)A list of assets and liabilities is prepared. 2) Name and explain the different features of three types of trusts. 3) What three types of planning.
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17.3   Short Answer 1) Discuss how financial planning principles will help you solve the following challenges. A) Getting married sooner than expected B) Starting a family C) Having a high-paid job that you continually stress over 2) Now that you have completed the course, discuss in detail for each component of the plan what outside.
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31) Each year, mutual funds must distribute A) only dividends received for the year. B) all profits generated by the portfolio. C) only capital gains generated by the fund. D) interest and dividends received for the year. 32) Which of the following can be the source of profits for owners of a Canadian bond mutual.
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15.4   Essay 1) List three sources of income when you retire. 2) Name two sources of retirement plans available to the self-employed. 3) Describe the differences between fixed and variable annuities and outline the risks of choosing one over the other. 4) What three factors do you need to calculate how much money you.
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11) Self-employed individuals pay the employee and employer portions of CPP, totalling 9.9 percent on earnings over the YBE and below the YMPE. 12) Individual Canada Pension Plan contributions amount to 7 percent of all income. 13) Both CPP and OAS are funded by the tax dollars of all Canadians. 14) Defined-contribution employer-sponsored.
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11) The idea of having adequate insurance is to protect against events that could reduce your income or wealth. 12) It is not possible to have too much insurance coverage. 13) There is a cost-benefit relationship for insurance protection, which means you could be underinsured or overinsured. 14) Even though insurance costs cannot.
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16.3   Short Answer 1) Explain the differences between and the importance of using continuing and non-continuing forms of a power of attorney in estate planning. 2) Discuss the characteristics and expertise you would look for in the person you want to appoint as your executor. 3) Briefly describe the conditions needed to create.
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14.4   Essay 1) List the following five types of medium-term bond mutual funds in order, starting with the lowest default risk to the highest: provincial bonds, government bonds, corporate, high-yield, T-bills. 2) Arrange the following five bond funds, starting with the lowest return and risk to the highest: long-term global, short-term T-bills,.
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41) The most important expense statistic mentioned in the prospectus is the A) gross profit margin ratio. B) expense ratio. C) times interest earned ratio. D) back-end load ratio. 42) Which of the following applies to global bond funds in comparison to Canadian bond funds? A) They are a safe way to ensure higher yields. B) They.
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21) Investing in which of the following funds will typically give you the least diversification? A) Growth funds B) Large-Cap funds C) Equity income funds D) Sector funds 22) The return on an index fund may be less than the return on the index it represents because of A) tracking errors and costs. B) management fees. C) load.
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17.2   Multiple Choice 1) The first component in creating a financial plan is A) preparing a budget. B) setting up a brokerage account. C) starting an emergency fund. D) purchasing the necessary car insurance. 2) A budget is not intended to help you determine A) how much money you will have at the end of each month. B).
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16.1   True/False 1) Two key goals of estate planning are to ensure that your assets pass to the proper beneficiaries and to ensure that taxes paid are minimized. 2) An estate represents a deceased person's assets after all debts are paid. 3) Estate planning is the act of planning before death how your.
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21) Allred Corporation's retirement plan will pay $250 a month for each year worked for the company commencing on the employee's 65th birthday. People must work for the company for 10 years to qualify for the pension. This plan is a A) defined-benefit plan. B) defined-contribution plan. C) LIRA. D) registered income fund. 22) You.
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11) Which is the most expensive way to fund purchases? A) Savings B) Mortgage loans C) Personal loans D) Credit cards 12) The purpose of insurance is to protect your A) liabilities and expenses. B) assets and liabilities. C) assets and net worth. D) income and expenses. 13) Which of the following statements about insurance is true? A) It protects you.
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31) Even average earners can accumulate wealth by A) spending less than they make. B) spending more than they make. C) eating out less often. D) winning the lottery. 32) Financial statements include all of the following except a(n) A) risk assessment to match your profile. B) income statement. C) prospectus. D) asset allocation statement. 33) Financial documents should be A).
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41) If you are looking for fast-growth stocks, you should look for stocks that do not pay dividends. 42) You should not make investments after you have sufficient liquidity. 43) It is important to consider your goals before putting money into your investments or retirement accounts. 44) You will need to revise your.
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16.2   Multiple Choice 1) The practice of planning how wealth will be allocated on or before your death is A) asset allocation. B) estate planning. C) intestacy planning. D) will planning. 2) A legal document specifying distribution of your assets upon death is a A) tax return. B) letter of last instruction. C) will. D) trust. 3) Which of the following.
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