1. Which of the following events normally should not trigger a review of your will?
a. Changing to a new job
b. Moving to a new province
c. Death of a child
d. Marriage
2. In non-registered accounts, investors in high tax brackets will normally prefer mutual funds that generate
a. short-term capital gains.
b. dividends.
c. long-term stock dividends.
d. long-term capital gains.
3. The market for newly issued securities and initial public offerings (IPOs) is the
a. original market.
b. secondary market.
c. primary market.
d. initial market.
4. A disadvantage of term insurance is that
a. it becomes more expensive when you renew it.
b. the cash value portion of the premium is larger than other forms.
c. coverage ceases if you develop a life threatening illness.
d. you can only exchange your cash value for other insurance.
5. Which of the following is true of corporate bonds compared to federal government bonds?
a. They are short-term debt securities issued by large companies.
b. They have long-term maturity dates at the option of the buyer.
c. They pay higher interest rates because they have higher default risk.
d. They offer protection against inflation.