Product Knowledge Quiz April 2019

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| By Wjshdhan_StCyr
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Quizzes Created: 1 | Total Attempts: 564
Questions: 15 | Attempts: 564

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Questions and Answers
  • 1. 

    Which product should be offered to a client looking for (1) a low risk, medium term investment; (2) returns while preserving capital; (3) no withdrawal fees; (4) quick and easy access to funds when needed and (5) can be held as collateral?

    • A.

      A. Advanced Term Deposit

    • B.

      B. Term Deposit

    • C.

      C. Mutual Funds

    • D.

      D. Sure Investor

    Correct Answer
    C. C. Mutual Funds
    Explanation
    Mutual funds are a suitable option for a client looking for a low risk, medium term investment as they typically offer a diversified portfolio of stocks, bonds, and other securities. They also provide returns while preserving capital, as the fund manager aims to generate income while minimizing the risk of loss. Mutual funds generally do not have withdrawal fees, allowing the client to access their funds easily when needed. Additionally, mutual funds can be held as collateral, providing additional flexibility for the client.

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  • 2. 

    If invested in this product one can expect (1) capital appreciation on price; (2) income generation from dividends; (3) no minimum holding period; (4) quick and easy access to funds when needed and (5) can be held as collateral. What are

    • A.

      A. Bonds

    • B.

      B. Equity

    • C.

      C. Mutual Funds

    • D.

      D. Term Deposits

    Correct Answer
    B. B. Equity
    Explanation
    Equity refers to shares or stocks of a company. Investing in equity can provide capital appreciation on the price of the shares, as the value of the company increases. It can also generate income through dividends, which are a portion of the company's profits distributed to shareholders. Unlike some other investment options, there is no minimum holding period for equity investments, allowing investors to buy and sell shares as needed. Additionally, equity investments can be used as collateral for loans if necessary. Therefore, based on the given characteristics, equity is the most suitable answer.

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  • 3. 

    Which of the following are the benefits of investing in Equities? i. Income Generation ii. Capital Appreciation iii. No minimum holding period iv. Cannot be held as collateral

    • A.

      A. i and iii

    • B.

      B. All of the above

    • C.

      C. i, ii and iii

    • D.

      D. None of the above

    Correct Answer
    C. C. i, ii and iii
    Explanation
    Investing in equities provides several benefits. Firstly, it offers income generation through dividends, which are a portion of the company's profits distributed to shareholders. Secondly, it provides capital appreciation as the value of the shares can increase over time. Thirdly, there is no minimum holding period, allowing investors to buy and sell shares as per their convenience. However, equities cannot be held as collateral for loans or other financial transactions. Therefore, the correct answer is option c, which includes all the benefits mentioned.

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  • 4. 

    As the parent of a university student I am looking for a financial solution which will assist them in meeting term time expenses such as books, school supplies and grocery items. What is a _________________.

    • A.

      A. Mutual Fund

    • B.

      B. University PowerPay Facility

    • C.

      C. Sure Investor

    • D.

      D. Term Deposit

    Correct Answer
    B. B. University PowerPay Facility
    Explanation
    The University PowerPay Facility is the correct answer because it is specifically mentioned in the question that the parent is looking for a financial solution to assist their university student in meeting term time expenses. The University PowerPay Facility is likely a financial program or service offered by the university that provides students with a convenient way to manage and pay for their expenses during the academic term.

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  • 5. 

    What is (1) cheaper than using a credit card; (2) safer than carrying around cash; (3) affords the ability to shop online; (4) has an annual fee of $150 and (5) charges no reload fees?

    • A.

      A. Linx Card

    • B.

      B. Gold Card

    • C.

      C. Classic Card

    • D.

      D. PowerPay Facility 

    Correct Answer
    C. C. Classic Card
    Explanation
    The Classic Card is the correct answer because it meets all the given criteria. It is cheaper than using a credit card, safer than carrying cash, allows online shopping, has an annual fee of $150, and does not charge reload fees.

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  • 6. 

    Which of the following would you suggest as the main reason for the opening of a Business Current Account during a financial planning conversation with a client?

    • A.

      Access to cheque books

    • B.

      It is illegal to commingle business and personal funds

    • C.

      An overdraft may be secured

    • D.

      Funds will be covered by deposit insurance

    Correct Answer
    B. It is illegal to commingle business and personal funds
    Explanation
    The main reason for suggesting the opening of a Business Current Account during a financial planning conversation with a client is because it is illegal to commingle business and personal funds. By having a separate account for business transactions, it ensures that the client maintains proper financial records and avoids any legal issues or complications that may arise from mixing personal and business funds.

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  • 7. 

    Integral to a financial planning conversation on retirement planning which products can be offered? i. Mutual Funds ii. Step-up Rate Deposit iii. Sure Investor iv. Fixed Income Solutions

    • A.

      I and iii

    • B.

      All of the above

    • C.

      I and iv

    • D.

      None of the above

    Correct Answer
    B. All of the above
    Explanation
    The correct answer is "All of the above." This means that all of the mentioned products, including mutual funds, step-up rate deposit, sure investor, and fixed income solutions, can be offered as part of a financial planning conversation on retirement planning.

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  • 8. 

    A high net worth individual is interested in investing in global markets while conducting their own research. Which product should he be offered?

    • A.

      Sure Investor

    • B.

      Bonds

    • C.

      JMMB Interactive

    • D.

      Equities

    Correct Answer
    C. JMMB Interactive
    Explanation
    The high net worth individual who wants to invest in global markets while conducting their own research should be offered JMMB Interactive. This product is likely to provide the individual with the necessary tools and resources to research and invest in global markets independently. Bonds and equities may not offer the same level of flexibility and control over the investment decisions. Sure Investor is not a suitable option as it does not provide any information on its features or benefits.

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  • 9. 

    What will you offer to a client looking for a facility which offers online shopping, competitive interest rate, and a reward tied to the funds utilized?

    • A.

      PowerPay Facility

    • B.

      Sure Investor

    • C.

      Equities

    • D.

      JMMB Interactive

    Correct Answer
    A. PowerPay Facility
    Explanation
    The PowerPay Facility is the correct answer because it offers online shopping, competitive interest rates, and a reward tied to the funds utilized. This facility provides a convenient online platform for shopping, offers competitive interest rates for financial transactions, and rewards clients based on the amount of funds they utilize.

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  • 10. 

    What should be offered to a client looking for something which is (1) safer than carrying around cash; (2) affords protection with the use of a PIN; (3) does not have an annual fee (4) can be utilized at the ATM and POS

    • A.

      Linx Card

    • B.

      Gold Card

    • C.

      Classic Card

    • D.

      PowerPay Facility 

    Correct Answer
    A. Linx Card
    Explanation
    The Linx Card should be offered to a client looking for something safer than carrying around cash because it provides protection with the use of a PIN. Additionally, it does not have an annual fee and can be utilized at both ATMs and point of sale terminals.

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  • 11. 

    Which of the following are benefits of the A+ Savings Account? i. Offers interest on balances as low as $25 ii. Safer than carrying around cash iii. Encourages saving and financial discipline iv. Affords the ability to shop online

    • A.

      I only

    • B.

      I and II

    • C.

      I and III

    • D.

      None of the above

    Correct Answer
    C. I and III
    Explanation
    The A+ Savings Account offers interest on balances as low as $25, which is a benefit for customers who want to earn interest even with a small amount of money. Additionally, the account encourages saving and financial discipline, which can help individuals develop good financial habits and achieve their savings goals. Therefore, the correct answer is I and III.

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  • 12. 

    For the saver who is interested in saving for tomorrow with the flexibility of withdrawing funds as needed, which would you offer?

    • A.

      Term Deposit

    • B.

      Step-up Rate Deposit

    • C.

      Booster Savings

    • D.

      Pro-chequing Account

    Correct Answer
    C. Booster Savings
    Explanation
    The correct answer is Booster Savings. Booster Savings is the most suitable option for a saver who wants to save for the future while having the flexibility to withdraw funds when needed. This type of account typically offers a higher interest rate compared to a regular savings account, allowing the saver to grow their savings faster. Additionally, Booster Savings accounts often have no or low minimum balance requirements and may offer features like no withdrawal fees or limited access to funds without penalties. This makes it an ideal choice for individuals who want to save for the future while maintaining some liquidity.

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  • 13. 

    As a middle income personal banking client wishing to have access to cheques which account would you recommend?

    • A.

      Business Current

    • B.

      Pro-chequing

    • C.

      Private Plus

    • D.

      Step-up Rate Deposit

    Correct Answer
    B. Pro-chequing
    Explanation
    Pro-chequing would be the recommended account for a middle-income personal banking client wishing to have access to cheques. This account is specifically designed for clients who frequently write cheques and need easy access to their funds. It offers features such as unlimited cheque writing, low or no monthly fees, and sometimes even interest on the account balance. This makes it a suitable option for individuals who need the convenience and flexibility of writing cheques for their financial transactions.

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  • 14. 

    An emerging high net worth client desires to have access to cheques. Which account will you recommend?

    • A.

      Current

    • B.

      Pro-chequing

    • C.

      Private Plus

    • D.

      Step-up Rate Deposit

    Correct Answer
    C. Private Plus
    Explanation
    The Private Plus account would be recommended for the emerging high net worth client who desires access to cheques. This account is specifically designed for high net worth individuals and offers a range of exclusive benefits and services, including the ability to write cheques. The Current account is a basic account without any special features, while the Pro-chequing account may not be suitable for high net worth individuals. The Step-up Rate Deposit account is a savings account and does not offer the desired cheque access.

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  • 15. 

    Your client is interested in owning a home but does not currently have the required down payment. Which account will you recommend?

    • A.

      Step-up Rate Deposit

    • B.

      Advanced Term

    • C.

      Save to Own

    • D.

      Mutual Funds

    Correct Answer
    C. Save to Own
    Explanation
    Save to Own is the recommended account because it is specifically designed to help individuals save for a down payment on a home. This account allows clients to deposit money regularly and earn interest on their savings, helping them accumulate the required down payment over time. It is a suitable option for someone who does not currently have the necessary funds but wants to work towards owning a home in the future.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 04, 2019
    Quiz Created by
    Wjshdhan_StCyr
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