Question

Q1. Auto insurance rates are based on

Select one:

a. your marital status.

b. the condition of your vehicle.

c. whether or not you keep your car in the garage.

d. the number of kilometres and the type of driving you do each year.

Question 2

A legal document in which individuals specify their preferences in the event that they become mentally or physically disabled is called a

Select one:

a. letter of wishes.

b. living trust.

c. power of attorney.

d. living will.

Question 3

Financial institutions that accept deposits (that are insured) from individuals and provide loans are called

Select one:

a. finance companies.

b. deposit clearing corporations.

c. depository institutions.

d. investment companies.

Question 4

On the secondary bond market,

Select one:

a. bond prices vary with interest rate movement.

b. only new bonds can be sold.

c. bonds usually take several days to sell.

d. bonds are guaranteed to bring at least par value.

Question 5

You have $10,000 to invest now and can add $550 a month, have a moderate risk profile, and would like to set these funds aside for retirement in 20 years. You should

Select one:

a. buy one-year GICs.

b. put the money in a money market savings account.

c. invest in mutual funds managed by the asset allocation method.

d. buy preferred stocks with the opportunity of capital appreciation.

Answer 1

SOLUTION

Q1)

OPTION-B

i.e the condition of your vehicle.

Q2)

OPTION -C

I.e power of attorney

Q3)

OPTION =A

I.e finance companies

Q4)

OPTION-A

I.e  bond prices vary with interest rate movement.

Q5)

OPTION-C

i.e invest in mutual funds managed by the asset allocation method.