18 - What are the risks?

Question 1

What are the 3 risks of not investing?

Answer 1

1. Inability to fund education or retirement goals
2. Lower standard of living
3. Inability to create an estate

Question 2

What are the 9 types of financial risks?

Answer 2

1. Business Risk
2. Currency Risk
3. Default Risk
4. Inflation Risk
5. Interest Rate Risk
6. Liquidity Risk
7. Market, or Systemic Risk
8. Non-systemic Risk
9. Political Risk

Question 3

Describe the 4 providers of insurance against investment risk.

Answer 3

1. Canada Deposit Insurance Corporation (CDIC)
2. Canadian Investor Protection Fund (CIPF)
3. Assuris
4. Mutual Fund Dealers Association Investor Protection Corporation (IPC)