Question 1

Which of the following was a characteristic of the first Canadian pension program in 1927?

Accepted Answer

The first Canadian pension program in 1927 required potential pensioners to pass a residence requirement and a means test. This means that only those who met certain criteria were eligible for the pension. The other choices are incorrect as the provinces did not have to pay the full cost of the program, pensions were not available to those who chose to pay into the program, and the program did not act to replace the income of retirees without an alternate source of income.

Question 2

Which of the following are examples of income maintenance programs?

Accepted Answer

A

Question 3

Why did the federal government keep payments of early pension programs low?

Accepted Answer

The federal government kept payments of early pension programs low to encourage individuals to save and provide for their own old age, rather than relying solely on government support.

Question 4

What is the term for programs designed to help people maintain their pre-retirement income and lifestyle?

Accepted Answer

Income maintenance programs are specifically designed to help individuals maintain their pre-retirement income and lifestyle. These programs include Social Security, disability benefits, and other government assistance programs.

Question 5

Which of the following has increased faster among older people than among younger people (aged 15-64)from the early 1980s to the present?

Accepted Answer

The answer of Which of the following has increased faster...

Question 6

According to Mo and colleagues (2006),which of the following is the major part of the majority of older Canadians' pension income?

Accepted Answer

According to Mo and colleagues (2006), government transfers and private pensions are the major part of the majority of older Canadians' pension income.

Question 7

In 2008,about 12 percent of elderly unattached men and over what percentage of elderly unattached women lived in poverty?

Accepted Answer

In 2008, over 17% of elderly unattached women lived in poverty, which is higher than the percentage for their male counterparts.

Question 8

Why do people on fixed pensions get poorer every year?

Accepted Answer

Fixed pensions are not adjusted for inflation, so as the cost of living increases, the purchasing power of the pension decreases. Thus, pensioners get poorer every year, even though the nominal value of their pension payments remains constant.

Question 9

Which of the following is an example of an "unattached" individual?

Accepted Answer

The answer of Which of the following is an example...

Question 10

According to Marshall (2011),what percentage of Canadian people within an age group do not feel that they are financially secure?

Accepted Answer

According to Marshall (2011), 1/4 of Canadian people within an age group do not feel that they are financially secure.

Question 11

Russell has a pension plan that is not indexed to the cost of living.He needs to save some extra money for his retirement so that he will maintain his current standard of living.What type of pension plan does Russell have?

Accepted Answer

Russell has a fixed pension plan, which means that the amount he will receive in retirement is predetermined and not adjusted for inflation. Therefore, he will need to save extra money in order to maintain his current standard of living.

Question 12

The Old Age Security (OAS)and the Guaranteed Income Supplement (GIS)are examples of which of the following?

Accepted Answer

The Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) are both income security programs, which provide financial support to seniors in Canada. They are not part of the Canada Pension Plan (CPP), which is a separate program that provides retirement, disability, and survivor benefits to eligible contributors. The OAS and GIS are also not social assistance programs, which are designed to provide temporary or emergency financial aid to low-income individuals and families.

Question 13

The Guaranteed Income Supplement program established to supplement Old Age Security was designed to do which of the following?

Accepted Answer

The Guaranteed Income Supplement program was designed specifically to help the poorest older people who may not have sufficient income to cover their basic needs, such as housing and food. It provides an additional monthly amount to those who receive the basic Old Age Security pension. It is not intended to discourage retirees from working or to remove the burden of caring for older people from the federal government, but rather to enable older people to live more comfortably.

Question 14

What are the two types of pension programs that form the basis of the Canadian pension system today?

Accepted Answer

The answer of What are the two types of pension...

Question 15

Which one of the following groups of seniors still continues to show the highest rates of poverty among old people?

Accepted Answer

Senior women who live alone continue to show the highest rates of poverty among old people. This may be due to factors such as lower lifetime earnings, fewer work opportunities, and longer life expectancies leading to increased healthcare costs.

Question 16

What were income security programs designed to do?

Accepted Answer

Income security programs are primarily designed to ensure that individuals can meet their basic needs in retirement, providing a safety net for those who may not have sufficient savings or private pensions.

Question 17

Which of the following is one of the three groups of individuals who often live below the poverty line in old age?

Accepted Answer

Very old people often live below the poverty line in old age due to factors like increased healthcare costs, insufficient retirement savings, and the depletion of resources over time.

Question 18

What has happened to poverty rates for seniors since the early 1980s,according to a number of studies?

Accepted Answer

According to a number of studies, poverty rates for seniors have decreased since the early 1980s. This can be attributed to programs like Social Security and Medicare, as well as an increase in retirement savings options.

Question 19

What is intergenerational family transfer?

Accepted Answer

Intergenerational family transfer refers to the amount of money or assets that are passed down from one generation to another within a family. It can include inheritance, gifts, and other forms of wealth transfer.

Question 20

What will happen to the average income earner after he or she retires?

Accepted Answer

Generally, the income of an average income earner decreases after they retire as they no longer receive a regular income from employment. They may have a pension, social security, or savings to draw from, but the amount may still be less than what they earned while working.

Quiz 8: Finances and Economics