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Q.1
Many financial experts recommend that you save at least 10% of your income each year towards retirement
True
False
Q.2
The "Rule of 72" refers to;
The amount of savings you expect to have at age 72
The number of years it takes to double your savings when you earn a given interest rate on your money
The expected retirement age for today's young adults
Q.3
The purchasing power of $10,000 removed from a TFSA compared to $10,000 removed from an RRSP is
Higher
Lower
The same
Q.4
Historically speaking, annual returns in the bond market have been more variable than annual returns in the stock market
True
False
Q.5
Over the long term (1935- 2014), annual compound returns from both US and Canadian stocks have outperformed those of the housing market
True
False
Q.6
Diversifying your investments properly means including;
1. Different types of investments i.e. stocks, bonds, cash, real estate etc.
2. Investments from different countries
3. Investments from different industries
4. #1 & #2
5. All of the above
Q.7
When young adults are just starting out, their choice of investments contributes much more to their overall returns than the amount they save
True
False
Q.8
The strategy called "paying yourself first" refers to;
1. Using your money to fund monthly expenses first
2. A successful savings strategy
3. Regular, automatic amounts moved to savings before they can be spent
#1 & #2
#2 & #3
Q.9
In any given year, most professional investors can predict stock market movements with a high degree of certainty
*
True
False
Q.10
If your stock portfolio declines by 20% this year, it must increase by __% next year to get back to the same level
<20%
20%
>20%
Q.11
Contributing to an RRSP has the most value when your current tax rate is high and your expected tax rate in retirement is low
True
False
Q.12
The lower your investment returns are, the more your end results are influenced by the money you contribute as opposed to the investment gains you make
True
False
Q.13
Bond prices move in the same direction as interest rates
True
False
Q.14
Which of the following can affect your ability to save and invest successfully;
Your emotions and attitudes towards money
Your investing knowledge and experience
Things you learned about money growing up
Your money habits and behaviours
All of the above
Q.15
After deducting their fees, most professional money managers outperform the market each year
True
False
Q.16
Intelligence plays a greater role in building wealth than behaviour does
True
False
Q.17
When choosing an investment, the fees you pay are as important a consideration as the return you can expect
True
False
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