11/3/25, 3:40 PM Segregated funds and annuities Flashcards | Quizlet
Social Science Economics Finance
Segregated funds and annuities
Leave the first rating
Save
Students also studied
list of entries math formula memorize FNCE 4P03 chapter 2 BUSI32
25 terms 9 terms Teacher 47 terms 17 terms
saratusken3 Preview Catalina_Muscat Preview Linh5cang Preview and
Terms in this set (88)
Retirement savings plan (RRSP)
a registered plan to encourage savings that pay towards costs of higher education.
Registered educations savings plan (RESP)
contributions not tax deductible
a tax free savings account. investment return earned by deposits to the account and
Tax free savings plan account (TFSA) withdraws are not taxable. contributions to ____ are not tax-deductible. contributions
not used in any year is carried forward. withdraws can be made anytime
A trust registered with Canada Revenue Agency and established by an employer to
Registered Pension Plan (RPP) provide pension benefits for employees when they retire. Both employer and
employee may contribute to the plan and contributions are tax-deductible.
interest A sum paid or charged for the use of money or for borrowing money
paid quarterly by companies from their earnings to their stock owners. benefit from
dividend
dividend tax credit
a tax levied on the returns that people earn from capital investments, like the profits
capital gains tax
from the sale of stocks or a home
capital loss the sale of an investment for less than its purchase price
Stocks shares of ownership in a company
A special type of stock whose owners, though not generally having a say in running
preferred stock
the company, have a claim to profits before other stockholders do.
Term used to describe the total amount paid in by stockholders for the shares they
common stock
purchase.
Bonds Certificates of debt that carry a promise to buy back the bonds at a higher price
savings account a bank account that earns interest
https://quizlet.com/ca/893917448/segregated-funds-and-annuities-flash-cards/ 1/6
, 11/3/25, 3:40 PM Segregated funds and annuities Flashcards | Quizlet
an investment classified as a term deposit based on an investor loaning a sum of
guaranteed investment certificates (GIC) money to the institution providing the _____. The institution guarantees investor receive
principal plus promised rate of interest at the maturity date of the ______
An investment that holds a wide range of different investment instruments, providing
Mutual funds
diversification
Inflation A general and progressive increase in prices
interest rate Percentage of amount borrowed to be added to the amount loaned and paid back
market when investment is locked in at a low interest rate
Liquidity the ease with which an asset can be converted into cash
Credit Risk the probability that the borrower will fail to pay some of the interest or principal
chance that factors affecting an industry as a whole will negatively affect the value of
industry risk
an investment
guarantees an investor can withdraw from seg fund anytime and receive market value
maturity date The date on which an investment becomes due for payment.
reset a process that locks in the higher market value of a fund
Segregated funds offer protection from creditors in the event of bankruptcy,
Creditor Protection because segregated funds are an insurance product, and the insurance proceeds
generally fall outside the provisions of bankruptcy legislation.
no _____ of an application for seg fund contract. health of contracts policy owner of
absence of medical underwriting annuitant is not assessed because guarantees are based on strength of investment
and not a persons life
accounts that pool money from individuals and invest in securities that have a short-
Money Market Funds (MMFs)
term maturity, such as one year or less
Bond Funds Mutual funds that invest primarily in bonds
Equity Funds invest in stock, some fixed income, or other securities
balanced funds aim to strike a balance between stocks and fixed income.
Invest in preferred shares as well as high-quality common shares, with a history of
Dividend Funds
consistently paying dividends.
Aim for income and safety
mortgage funds
Hold a group of mortgages
Index funds are a mirror of an index. invests in the same stocks listed on the index
Specialty Funds focus on a group of companies sharing a particular characteristic
annuitant receives the income form the contract for a specific period of time or for
single life contract
life
Joint life contract pays an income over the span of 2 people
term an annuity issued to pay income to a specified age.
The ______is a dollar figure quoted to future policy owners based on the current
interest rate and other factors that pertain to the annuitant and how the annuity
annuity rate
contract is structured. In effect, it represents a return on the sum invested in the
annuity.
the risk of capital losses to which investors are exposed because of changing
interest rate risk
interest rates
inflation risk The danger that money won't be worth as much in the future as it is today
https://quizlet.com/ca/893917448/segregated-funds-and-annuities-flash-cards/ 2/6
Social Science Economics Finance
Segregated funds and annuities
Leave the first rating
Save
Students also studied
list of entries math formula memorize FNCE 4P03 chapter 2 BUSI32
25 terms 9 terms Teacher 47 terms 17 terms
saratusken3 Preview Catalina_Muscat Preview Linh5cang Preview and
Terms in this set (88)
Retirement savings plan (RRSP)
a registered plan to encourage savings that pay towards costs of higher education.
Registered educations savings plan (RESP)
contributions not tax deductible
a tax free savings account. investment return earned by deposits to the account and
Tax free savings plan account (TFSA) withdraws are not taxable. contributions to ____ are not tax-deductible. contributions
not used in any year is carried forward. withdraws can be made anytime
A trust registered with Canada Revenue Agency and established by an employer to
Registered Pension Plan (RPP) provide pension benefits for employees when they retire. Both employer and
employee may contribute to the plan and contributions are tax-deductible.
interest A sum paid or charged for the use of money or for borrowing money
paid quarterly by companies from their earnings to their stock owners. benefit from
dividend
dividend tax credit
a tax levied on the returns that people earn from capital investments, like the profits
capital gains tax
from the sale of stocks or a home
capital loss the sale of an investment for less than its purchase price
Stocks shares of ownership in a company
A special type of stock whose owners, though not generally having a say in running
preferred stock
the company, have a claim to profits before other stockholders do.
Term used to describe the total amount paid in by stockholders for the shares they
common stock
purchase.
Bonds Certificates of debt that carry a promise to buy back the bonds at a higher price
savings account a bank account that earns interest
https://quizlet.com/ca/893917448/segregated-funds-and-annuities-flash-cards/ 1/6
, 11/3/25, 3:40 PM Segregated funds and annuities Flashcards | Quizlet
an investment classified as a term deposit based on an investor loaning a sum of
guaranteed investment certificates (GIC) money to the institution providing the _____. The institution guarantees investor receive
principal plus promised rate of interest at the maturity date of the ______
An investment that holds a wide range of different investment instruments, providing
Mutual funds
diversification
Inflation A general and progressive increase in prices
interest rate Percentage of amount borrowed to be added to the amount loaned and paid back
market when investment is locked in at a low interest rate
Liquidity the ease with which an asset can be converted into cash
Credit Risk the probability that the borrower will fail to pay some of the interest or principal
chance that factors affecting an industry as a whole will negatively affect the value of
industry risk
an investment
guarantees an investor can withdraw from seg fund anytime and receive market value
maturity date The date on which an investment becomes due for payment.
reset a process that locks in the higher market value of a fund
Segregated funds offer protection from creditors in the event of bankruptcy,
Creditor Protection because segregated funds are an insurance product, and the insurance proceeds
generally fall outside the provisions of bankruptcy legislation.
no _____ of an application for seg fund contract. health of contracts policy owner of
absence of medical underwriting annuitant is not assessed because guarantees are based on strength of investment
and not a persons life
accounts that pool money from individuals and invest in securities that have a short-
Money Market Funds (MMFs)
term maturity, such as one year or less
Bond Funds Mutual funds that invest primarily in bonds
Equity Funds invest in stock, some fixed income, or other securities
balanced funds aim to strike a balance between stocks and fixed income.
Invest in preferred shares as well as high-quality common shares, with a history of
Dividend Funds
consistently paying dividends.
Aim for income and safety
mortgage funds
Hold a group of mortgages
Index funds are a mirror of an index. invests in the same stocks listed on the index
Specialty Funds focus on a group of companies sharing a particular characteristic
annuitant receives the income form the contract for a specific period of time or for
single life contract
life
Joint life contract pays an income over the span of 2 people
term an annuity issued to pay income to a specified age.
The ______is a dollar figure quoted to future policy owners based on the current
interest rate and other factors that pertain to the annuitant and how the annuity
annuity rate
contract is structured. In effect, it represents a return on the sum invested in the
annuity.
the risk of capital losses to which investors are exposed because of changing
interest rate risk
interest rates
inflation risk The danger that money won't be worth as much in the future as it is today
https://quizlet.com/ca/893917448/segregated-funds-and-annuities-flash-cards/ 2/6
