Seg Mock Exam 1 Questions and Answers 100% Pass

Seg Mock Exam 1 Questions and Answers 100% Pass Arnold is a self-employed truck driver with 20 years of experience. He is looking to invest his life savings in segregated funds for the creditor protection and the ability to designate specific beneficiaries on the segregated fund contract. In his line of work, Arnold knows accidents can happen and he would like to ensure that his family will not receive less than what he invested if he were to die unexpectedly. He has been investing for the last two decades and has seen a few market cycles during that time. Arnold's investment goals are long-term and he is not worried about short-term fluctuations. He keeps a close eye on fees and wants an investment option that is not too cost-prohibitive. What type of segregated fund guarantees are best Arnold? a) 75% death guarantee; 75% maturity guarantee b) 75% death guarantee; 100% maturity guarantee c) 100% death guarantee; 75% maturity guarantee d) 100% death guarant (corect) 100% death guarantee; 75% maturity guarantee Rationale: If Arnold dies, he wants his family to receive at least the amount that he invested. To meet this need, the death guarantee must be 100%. However, since he is comfortable with short-term fluctuations, is investing for the long-term and is sensitive to cost, a 75% maturity guarantee would be sufficient for him. (Refer to Section 5.2.3) Johnson is a member of a Group Registered Retirement Savings Plan (GRRSP), to which he and his employer each contribute 5% of his earnings. He is planning to leave his employer for a higher paying job. Johnson wonders whether his GRRSP has vested and whether he has ownership rights on the employer's contributions. When do contributions to GRRSPs vest? a) Two years b) Four years c) 30 days d) Immediately (wrong) Two years Rationale: Contributions to a GRRSP vest immediately. (Refer to Section 8.2.2.0) Navinder wants to know the differences between automatic resets and voluntary resets in a segregated fund contract. Which of the following is correct? a) Automatic resets extend the contract every time the value of the contract goes up. b) Voluntary resets can be made only