| 1. |
The risk-free investment rate is usually: |
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(a) The rate of AAA Corporate bonds. |
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(b) The rate on "blue chip" equities. |
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(c) The rate on 30-year Government of Canada bonds. |
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(d) The rate on T-bills. |
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| 2. |
A locked-in RRSP is a plan containing funds transferred: |
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(a) From a registered pension plan. |
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(b) From a Spousal RRSP. |
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(c) As part of a final divorce settlement. |
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(d) From a registered pension plan or a Spousal RRSP. |
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| 3. |
At what age must you convert your RRSP to a RRIF? |
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(a) Age 71. |
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(b) Age 65. |
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(c) Age 69. |
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(d) Age 60. |
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| 4. |
The earliest age at which you can start receiving your Old Age Security (OAS) is: |
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(a) Age 55. |
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(b) Age 60. |
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(c) Age 62. |
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(d) Age 65. |
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| 5. |
The maximum amount you may contribute to your RRSP for 2009 is: |
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(a) The lesser of $15,500 and 18% of your previous year's earnings. |
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(b) The lesser of $19,000 and 18% of your previous year's earnings. |
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(c) The lesser of $21,000 and 18% of your previous year's earnings. |
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(d) The lesser of $23,500 and 18% of your previous year's earnings. |
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| 6. |
Technical analysis refers to: |
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(a) Looking at past trends in the stock price in terms of market movements in order to determine future trends. |
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(b) Assessing the holdings of an equity mutual fund on a bottom-up value basis. |
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(c) Assessing the technical competence of a fund management team. |
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(d) Assessing the performance of a particular firm with respect to its industry in order to estimate its future profitability. |
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| 7. |
The purpose of a Spousal RRSP is to: |
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(a) Creditor-proof your RRSP. |
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(b) Legally income-split with your spouse at retirement. |
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(c) Reduce income tax paid by your spouse. |
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(d) Provide an immediate estate for your spouse. |
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| 8. |
A Pension Adjustment (PA): |
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(a) Reduces the amount you can contribute to an RRSP. |
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(b) Increases the amount you can contribute to an RRSP. |
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(c) Either increases or reduces the amount you can contribute to an RRSP. |
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(d) Applies only to registered pension plans, not RRSPs. |
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| 9. |
Which of the following types of mutual funds would you want to be invested in during a "bull market"? |
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(a) A money market fund. |
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(b) An equity fund. |
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(c) A balanced fund. |
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(d) A bond fund. |
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| 10. |
Which one of the following is true about bond prices? |
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(a) As interest rates rise, all bond prices rise. |
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(b) As interest rates rise, bond prices fall, except for Canada Savings Bonds. |
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(c) As interest rates rise, bond prices fall, except for all Government of Canada bonds. |
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(d) None of the above. |
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Select the Test Skills button and then scroll down to see your score and the answers.
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The following table shows your score and the correct answers.
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