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FINA 200 (JMSB exams) practice questions and answers Concordia University
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FINA 200 (JMSB exams) practice questions and answers Concordia University
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FINA 200 (JMSB exams) practice questions and answers Concordia University1. Most financial institutions will provide a mortgage loan only if the Total Debt Service (TDS)
ratio is and if the Gross Debt Service (GDS) is .
A. No more than 40%;no more than 32%
B. Greater than 32%; no more than 40%
C. No more than 32 %; no more than 40%
D. Greater than 40%; greater than 32%
2. The advantage of investing in mutual funds:
i. economies of scale
ii. Diversification
iii. Marketability
iv. Ease in record keeping
A. I and IV
B. I, II and IV
C. All the responses
D. I, III and IV
3. Exchange-traded funds (ETF’s) do not:
A. Give access to marketability
B. Offer diversification
C. Have a Net Asset Value Per Share
D. Provide economies of scale
4. Which statement is false about Segregated Funds:
A. Are insurance products
B. Provide economies of scale
C. Offers a monthly guarantee
D. Guarantee on deposits when contract matures
5. Terry immigrated to Canada when she was 45 years old, Terry is now age 65. If the
maximum monthly Old Age Security (OAS) is 590 for someone age 65, how much would Terry
be eligible to receive per month?
A. $590
B. $500
C. $395
D. $295
6. Which statements are true with respect to Defined-Benefit Pension Plans(DBPP)?
, i. Money is not taxed until it is withdrawn
ii. Benefit at retirement is guaranteed
iii. Benefit is based on a specific formula
iv. Amounts to fulfill the commitment are based on actuarial values which are based on a set
of assumptions.
A. I, II and III
B. All the responses.
C. I, II and IV
D. III and IV
7. Which statement is incorrect regarding disability insurance.
a. A policy’s waiting period is a timeframe that must lapse from the time of disability until
the time of receipt of disability income benefits.
b. A policy’s waiting period is non-cancelable which gives you the right to renew each year
at the same premium with a change in benefits.
c. A policy with a guaranteed renewable provision gives you the right to renew the policy
with the same benefits
d. A policy’s benefit period determines the length of time of coverage
8. Which one is an advantage of whole life insurance
a. Provides more immediate protector as it is less expensive than other insurance
b. Has cash values that can be borrowed
c. Suitable for dhort0trtm insurance needs or specific liabilities like a mortgage
d. Can be converted to permanent insurance without medical evidence
9. Dylan purchased 1,000 shares in a start-up company for $45 per share after the stocks
initial Public Offering (IPO). over the next 3 years, the stock declines at a compound annual
rate of 12% each year.
What is the company’s stock price after 3 years?
A. 27.63
B. 30.67
C. 38.68
D. 17.42
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