Quiz: Test Your Investment IQ

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* 1. True or False: When choosing investments, one of the most important factors is when you’ll need the money.

True

False

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* 2. How often should you review your investments?

Every quarter

Every year

Every five years

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* 3. Which type of fund is usually better for short-term needs?

Equity fund

Bond fund

High-interest savings account (HISA) or short-term bond fund

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* 4. True or false: Diversifying your investments helps reduce risk from market ups and downs.

True

False

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* 5. When you deposit money into the Social Housing Investment Program, who must your cheque be made payable to?

NatCan Trust

Worldsource Financial Management

Encasa Financial Inc.

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* 6. True or false: Mutual fund values can change daily based on market activity.

True

False

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* 7. True or false: You should change your investment strategy every time the market drops.

True

False

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* 8. What does it mean to “rebalance” your investments?

Selling everything and starting over

Adjusting your mix of investments to stay aligned with your goals

Moving all money into the best-performing fund

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* 9. Which of the following is the best example of a diversified investment approach within the Social Housing Investment Program?

Investing only in the Equity Fund

Dividing your investments between the Equity, Bond, and Short-Term Bond Funds based on your goals

Keeping everything in the High Interest Savings Account (HISA) for safety

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* 10. Why is it a good idea to diversify your investments across funds like HISA, bond funds, and the equity fund?

Different types of funds perform differently under various market conditions

Diversification guarantees you won’t lose money

It’s required by law