Question 1

Changes in the cost of living are

Accepted Answer

A)   different in various geographic areas.
B)   the same for different locations.
C)   constant from month to month.
D)   the same for all goods and services.
E)   not a factor when preparing a budget.F) All of the above
G) C) and E)

Question 2

Jennifer,a recent Concordia graduate,is struggling to pay off her $15,000 student loan.She has found employment with an international firm.Jennifer manages to balance her cash flows,but has only $500 in a chequing account to pay incoming bills.Her monthly after-tax cash inflows and expenses equal $2,000.What should be Jennifer's number one financial goal?

Accepted Answer

A)   Pay off her student loan immediately.
B)   Start an emergency fund.
C)   Contribute to an RRSP.
D)   Purchase life insurance coverage.
E)   Accumulate funds for a down payment on a homeF) A) and B)
G) A) and D)

Question 3

A brokerage statement is an example of a(n) ____________ record.

Accepted Answer

A)   investment
B)   insurance
C)   estate planning
D)   tax
E)   consumer purchaseF) A) and D)
G) All of the above

Question 4

Janice spends a total of $1,500 a month to cover all living expenses.Which of the following would represent the minimum acceptable emergency fund?

Accepted Answer

A)   Zero
B)   $1,500
C)   $4,500
D)   $9,000
E)   $3,000F) B) and D)
G) C) and D)

Question 5

Liquid assets refer to

Accepted Answer

A)   amounts that must be paid soon.
B)   amounts on which taxes must be paid
C)   total income available to a family for spending.
D)   the value of investments.
E)   items that are easily converted to cash.F) None of the above
G) A) and B)

Question 6

When it comes to savings,most Canadians

Accepted Answer

A)   have an adequate emergency fund.
B)   use several different savings techniques.
C)   find saving difficult.
D)   keep substantial amounts in a regular savings account.
E)   reduce the amount they save during their working life.F) B) and E)
G) All of the above

Question 7

____________ is the recommended budgeting strategy for dual income households where the two partners have trust and shared values and goals?

Accepted Answer

A)   Pooled income
B)   50/50
C)   Proportionate contributions
D)   Sharing the bills
E)   Sharing goalsF) B) and E)
G) C) and D)

Question 8

A budget deficit would result when a person's or family's

Accepted Answer

A)   actual expenses are less than planned expenses.
B)   actual expenses are greater than planned expenses.
C)   actual expenses equal planned expenses.
D)   assets exceed liabilities.
E)   net worth decreases.F) B) and E)
G) C) and E)

Question 9

Liabilities are amounts representing

Accepted Answer

A)   taxable income
B)   items of value.
C)   living expenses.
D)   debts
E)   current assets.F) A) and C)
G) None of the above

Question 10

An individual retirement account is an example of a(n) ____________ asset.

Accepted Answer

A)   liquid
B)   common
C)   investment
D)   household
E)   budgetedF) C) and D)
G) A) and B)

Question 11

This year Taylor's gross income is $70,000.Her deductions for federal and provincial taxes,CPP contributions and employment insurance are $13,500.She also had after-tax investment earnings of $6,000.Taylor's take-home pay is:

Accepted Answer

A)   $70,000
B)   $76,000
C)   $77,500
D)   $56,500
E)   $62,000F) A) and E)
G) None of the above

Question 12

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Accepted Answer

A)   the budget variance
B)   investment assets
C)   long-term liabilities
D)   current liabilities
E)   current assetsF) A) and E)
G) A) and D)

Question 13

Describe the four budgeting strategies suggested for dual income households.

Accepted Answer

Pooled Income: both incomes are combined...

Question 14

To determine a person's solvency,which financial document should be consulted?

Accepted Answer

A)   Cash flow statement
B)   Budget
C)   Debt consolidation statement
D)   Personal balance sheet
E)   Credit reportF) D) and E)
G) B) and D)

Question 15

A budget is a record of how a person or family has spent their money.

Accepted Answer

A) True 
 B)False

Question 16

Payments that do not vary from month to month are ____________ expenses.

Accepted Answer

A)   fixed
B)   current
C)   variable
D)   luxury
E)   budgetedF) A) and B)
G) B) and E)

Question 17

Ed Bostrom wants to reduce his fixed expenses.What action would be appropriate?

Accepted Answer

A)   Get a part-time job
B)   Eat more meals at home than in restaurants
C)   Find a place to live with a lower rent
D)   Save more money for the future
E)   Buy on credit for items that might cost more laterF) All of the above
G) B) and C)

Question 18

Current liabilities are amounts that must be paid within a short period of time,usually less than a year.

Accepted Answer

A) True 
 B)False

Question 19

What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?

Accepted Answer

A personal balance sheet is a net worth ...

Question 20

Warranties are commonly associated with ____________ purchases.

Accepted Answer

A)   investment
B)   insurance
C)   consumer
D)   financial services
E)   creditF) C) and D)
G) B) and D)

Exam 2: Money Management Skills

Describe the four budgeting strategies suggested for dual income households.

Correct Answer
verified
Pooled Income: both incomes are combined...
View Answer

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Correct Answer
verified

To determine a person's solvency,which financial document should be consulted?

Correct Answer
verified

Ed Bostrom wants to reduce his fixed expenses.What action would be appropriate?

Correct Answer
verified

When it comes to savings,most Canadians

Correct Answer
verified

____________ is the recommended budgeting strategy for dual income households where the two partners have trust and shared values and goals?

Correct Answer
verified

What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?

Correct Answer
verified
A personal balance sheet is a net worth ...
View Answer

A budget is a record of how a person or family has spent their money.

Correct Answer
verified

Liquid assets refer to

Correct Answer
verified

This year Taylor's gross income is $70,000.Her deductions for federal and provincial taxes,CPP contributions and employment insurance are $13,500.She also had after-tax investment earnings of $6,000.Taylor's take-home pay is:

Correct Answer
verified

Janice spends a total of $1,500 a month to cover all living expenses.Which of the following would represent the minimum acceptable emergency fund?

Correct Answer
verified

A budget deficit would result when a person's or family's

Correct Answer
verified

Correct Answer
verified

Liabilities are amounts representing

Correct Answer
verified

Payments that do not vary from month to month are ____________ expenses.

Correct Answer
verified

An individual retirement account is an example of a(n) ____________ asset.

Correct Answer
verified

Current liabilities are amounts that must be paid within a short period of time,usually less than a year.

Correct Answer
verified

Warranties are commonly associated with ____________ purchases.

Correct Answer
verified

Changes in the cost of living are

Correct Answer
verified

A brokerage statement is an example of a(n) ____________ record.

Correct Answer
verified

Exam 2: Money Management Skills

Describe the four budgeting strategies suggested for dual income households.

Correct AnswerverifiedPooled Income: both incomes are combined...View AnswerShow Answer

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Correct AnswerverifiedShow Answer

To determine a person's solvency,which financial document should be consulted?

Correct AnswerverifiedShow Answer

Ed Bostrom wants to reduce his fixed expenses.What action would be appropriate?

Correct AnswerverifiedShow Answer

When it comes to savings,most Canadians

Correct AnswerverifiedShow Answer

____________ is the recommended budgeting strategy for dual income households where the two partners have trust and shared values and goals?

Correct AnswerverifiedShow Answer

What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?

Correct AnswerverifiedA personal balance sheet is a net worth ...View AnswerShow Answer

A budget is a record of how a person or family has spent their money.

Correct AnswerverifiedShow Answer

Liquid assets refer to

Correct AnswerverifiedShow Answer

This year Taylor's gross income is $70,000.Her deductions for federal and provincial taxes,CPP contributions and employment insurance are $13,500.She also had after-tax investment earnings of $6,000.Taylor's take-home pay is:

Correct AnswerverifiedShow Answer

Janice spends a total of $1,500 a month to cover all living expenses.Which of the following would represent the minimum acceptable emergency fund?

Correct AnswerverifiedShow Answer

A budget deficit would result when a person's or family's

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Liabilities are amounts representing

Correct AnswerverifiedShow Answer

Payments that do not vary from month to month are ____________ expenses.

Correct AnswerverifiedShow Answer

An individual retirement account is an example of a(n) ____________ asset.

Correct AnswerverifiedShow Answer

Current liabilities are amounts that must be paid within a short period of time,usually less than a year.

Correct AnswerverifiedShow Answer

Warranties are commonly associated with ____________ purchases.

Correct AnswerverifiedShow Answer

Changes in the cost of living are

Correct AnswerverifiedShow Answer

A brokerage statement is an example of a(n) ____________ record.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Pooled Income: both incomes are combined...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A personal balance sheet is a net worth ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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