1. Bonds are certificates representing partial ownership of a firm.

True

False

2. In which of the following scenarios would you favour leasing versus purchasing a car?

a. The car in question is one whose value depreciates rapidly.

b. The kilometers that you drive each year vary significantly and are hard to predict.

c. The resale or trade-in value of the car will be high.

d. Repair expenses on the car are very low.

3. When considering joint ownership of assets for estate planning (specifically joint ownership with rights of survivorship) it is important to understand

a. that capital gains taxes will be deferred on this transaction until the survivor passes.

b. the implications of giving up your decision making power over the asset.

c. that naming a child as a joint owner of your principal residence will trigger a capital gain.

d. how the spousal roll-over rules will impact capital gains taxation.

4. Annuity due assumes a series of cash flows happening at the end of a period.

True

False

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

a. international bond funds.

b. Treasury bond funds.

c. foreign bond funds.

d. global bond funds.