Question 1

All except which one of the following are good ways to acquire money for starting an investment program?

Accepted Answer

A)   Pay bills first,and then save a reasonable amount of money for investment.
B)   Participate in an elective savings program offered by your employer.
C)   Make a special savings effort one month per year.
D)   Borrow money specifically for investment purposes.
E)   Take advantage of gifts,inheritances,and windfalls.F) A) and C)
G) None of the above D

Question 2

Which of the following investments has the best rate of return when adjusted for inflation?

Accepted Answer

A)   savings accounts
B)   corporate bonds
C)   Canadian treasury bills
D)   common stocks
E)   preferred stocksF) C) and E)
G) A) and E)

Question 3

Which one of the following is not a true statement?

Accepted Answer

A)   Most mutual funds invest in stocks,bonds,and other securities.
B)   Diversification provided by a mutual fund reduces risk.
C)   The goals of one mutual fund investor may differ from those of another.
D)   Since mutual fund managers are professionals,there is no need to evaluate a mutual fund.
E)   Mutual fund investments range from very conservative to very speculative investments.F) A) and C)
G) All of the above

Question 4

An intermediate-term objective is defined as one that will be accomplished within eighteen months.

Accepted Answer

A) True 
 B)False

Question 5

Statistical averages show trends and direction,but they do not pinpoint the actual value of a specific investment.

Accepted Answer

A) True 
 B)False

Question 6

A speculative investment is an investment that is made in the hope of earning a relatively large profit over a long period of time.

Accepted Answer

A) True 
 B)False

Question 7

The nationwide average increase is just over 7 percent for real estate investments.

Accepted Answer

A) True 
 B)False

Question 8

Nationwide real estate values increase by ____________ percent a year.

Accepted Answer

A)   1
B)   3
C)   7
D)   10
E)   15F) B) and C)
G) C) and D)

Question 9

The fees for investor services and newsletters may range between $30 and $750 a year.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would not be considered a safe investment for a conservative investor?

Accepted Answer

A)   corporate bonds
B)   guaranteed investment certificates
C)   passbook savings accounts
D)   blue-chip stocks
E)   collectiblesF) All of the above
G) A) and D)

Question 11

Which of the following is not a determinant of investor risk tolerance?

Accepted Answer

A)   goals and time frames
B)   economy
C)   income and asset base
D)   personality
E)   incomeF) A) and E)
G) A) and B) B

Question 12

The dollar value of a fixed-return investment decreases when overall interest rates in the economy decreases.

Accepted Answer

A) True 
 B)False

Question 13

The decision to establish an investment plan is an important first step to accomplishing your financial goals.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is/are a desktop information service?

Accepted Answer

A)   Bloomberg Professional
B)   3000 Xtra
C)   Reuters
D)   Canadian MoneySaver
E)   A,B,CF) B) and D)
G) B) and E)

Question 15

Which of the following is not a true statement?

Accepted Answer

A)   Professional management is an especially important factor for investors purchasing a mutual fund.
B)   One of the many reasons why investors purchase mutual funds is diversification.
C)   With mutual funds,an occasional loss in one security is often offset by gains in other securities.
D)   Mutual funds are designed to appeal to conservative investors with long-term investment goals.
E)   The individual investor is responsible for choosing the right mutual fund.F) B) and D)
G) A) and B) D

Question 16

When a bondholder loses money because interest rates in the economy increase,it is an example of ____________ risk.

Accepted Answer

A)   market
B)   interest rate
C)   inflation
D)   business failure
E)   currentF) B) and C)
G) C) and D)

Question 17

The fees for investor services and newsletters generally range from ____________ a year.

Accepted Answer

A)   $10 to $20,or free
B)   $20 to $30,or free
C)   $30 to $750,or free
D)   $300 to $1000,or free
E)   over $1000,or freeF) A) and D)
G) A) and C)

Question 18

A line of credit is a short-term loan that is approved before the money is actually needed.

Accepted Answer

A) True 
 B)False

Question 19

Diversification of assets among several types of investments can increase risk.

Accepted Answer

A) True 
 B)False

Question 20

When starting an investment program,you should participate in an elective savings program.

Accepted Answer

A) True 
 B)False

Exam 10: Financial Planning With Life Insurance

All except which one of the following are good ways to acquire money for starting an investment program?

Correct AnswerverifiedD

Which of the following investments has the best rate of return when adjusted for inflation?

Correct AnswerverifiedShow Answer

Which one of the following is not a true statement?

Correct AnswerverifiedShow Answer

An intermediate-term objective is defined as one that will be accomplished within eighteen months.

Correct AnswerverifiedShow Answer

Statistical averages show trends and direction,but they do not pinpoint the actual value of a specific investment.

Correct AnswerverifiedShow Answer

A speculative investment is an investment that is made in the hope of earning a relatively large profit over a long period of time.

Correct AnswerverifiedShow Answer

The nationwide average increase is just over 7 percent for real estate investments.

Correct AnswerverifiedShow Answer

Nationwide real estate values increase by ____________ percent a year.

Correct AnswerverifiedShow Answer

The fees for investor services and newsletters may range between $30 and $750 a year.

Correct AnswerverifiedShow Answer

Which of the following would not be considered a safe investment for a conservative investor?

Correct AnswerverifiedShow Answer

Which of the following is not a determinant of investor risk tolerance?

Correct AnswerverifiedB

The dollar value of a fixed-return investment decreases when overall interest rates in the economy decreases.

Correct AnswerverifiedShow Answer

The decision to establish an investment plan is an important first step to accomplishing your financial goals.

Correct AnswerverifiedShow Answer

Which of the following is/are a desktop information service?

Correct AnswerverifiedShow Answer

Which of the following is not a true statement?

Correct AnswerverifiedD

When a bondholder loses money because interest rates in the economy increase,it is an example of ____________ risk.

Correct AnswerverifiedShow Answer

The fees for investor services and newsletters generally range from ____________ a year.

Correct AnswerverifiedShow Answer

A line of credit is a short-term loan that is approved before the money is actually needed.

Correct AnswerverifiedShow Answer

Diversification of assets among several types of investments can increase risk.

Correct AnswerverifiedShow Answer

When starting an investment program,you should participate in an elective savings program.

Correct AnswerverifiedShow Answer

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B

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D

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