Q 1. Stopping payment on a cheque

Select one:

a. is possible after the cheque clears in cases of disputes.

b. can only be accomplished if the cheque has not cleared.

c. is free if your cheque book is lost or stolen.

d. is a service frequently provided to most customers.

Question 2

Mutual funds that invest in foreign bonds as well as Canadian bonds are called

Select one:

a. global bond funds.

b. foreign bond funds.

c. international bond funds.

d. Treasury bond funds.

Question 3

When considering your goal of retirement the best strategy is to

Select one:

a. ensure that you have enough cash flow to save in an RRSP.

b. expect CPP and OAS to look after most of your retirement needs.

c. pay off large purchases before opening an RRSP.

d. rely on your employers pension plan.

Q4.

You are a member of a defined benefit plan that pays a 2% benefit for each year of service based on your best five year's earnings. If you qualify for an unreduced pension and have worked for the company for 30 years, your pension will be

Select one:

a. 50 percent of the average of your best five years' earnings.

b. The answer is unknown because the benefit must be calculated by an actuary.

c. 60 percent of the average of your best five years' earnings.

d. 60 percent of the average of your last five years' earnings.

Question 5

What is the present value (PV) of $1000 to be received 15 years from today, assuming an interest rate of 6% per year?

Select one:

a. $411.

b. $417.

c. $388.

d. $404.