13 Aug Question 1If a bond is purchased at a price below
Question 1If a bond is purchased at a price below the face value, the yield to maturity is:greater than the stated interest rate.the same as the stated interest rate.less than the stated interest rate.zero.of no significance.Question 2A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called:dollar cost averaging.dividend reinvestment plan.buy and hold technique.regulated transaction.secured transaction.Question 3A stock that sells for less than $1 per share is called a:fractional stock.penny stock.dollar stock.ten-dollar stock.bad investment.Question 4Which one of the following expenditures for retirees is likely to decrease?clothing expensesinsurance expensesmedical expensesexpenses for leisure activitiesgifts and contributionsQuestion 5During your retirement, your employer’s health insurance plan and Medicare will cover your medical expenses.falsetrueQuestion 6What is likely to be an individual’s single biggest asset?Their automobileTheir jewelryTheir bank accountTheir homeNone of the choicesQuestion 7With an open-end credit, you pay back one-time loans in a specified period of time in equal amounts.falsetrueQuestion 8Which of the following is most likely not a valid reason for using credit?Borrowing for a stay in a hospital because of appendicitisBorrowing to purchase a car so that you can go to work full timeBorrowing to buy a printer for your home office now because you now it will be twice as expensive in two yearsBorrowing to pay for your expensive dinner and movie every weekAll of the choices are valid reasons for using creditQuestion 9Gordon Carey uses his Visa card to purchase a new digital camera and lens. What type of credit did Gordon use?Installment sales creditInstallment cash creditSingle lump sum creditRevolving creditIncidental creditQuestion 10For most mutual funds, the net asset value is calculated:yearly.quarterly.weekly.daily.whenever an investor calls and requests a price quote.Question 11Which of the following is an advantage of an exchange traded fund (EFT)?No minimum investment amountShares can be bought and sold through a broker at any time at the current priceManagement fees are often lowerCan use limit orders to purchase EFTsAll of the choices are advantages of EFTsQuestion 12For a mutual fund, the turnover ratio measures:the length of time a manager has been in charge of the fund.the amount of profit the fund earns from one investment period to the next.the number of months the average investor holds the fund before selling.the percentage of a fund’s holdings that have changed during a 12-month period.the percentage of institutional investors who own the fund.Question 13Grady Perdue has assets worth $1,500,000 and has written a legal document that specifies that all of his money go to his children. After he dies, there is a legal process to determine whether his document specifying how his assets be divided is valid. This is also the legal process by which his executor manages and distributes his property. What is this legal process called?An estateA willA trustProbateNone of the choicesQuestion 14A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.testamentarylivingrevocableirrevocableinsuranceQuestion 15A legal document authorizing someone to act on your behalf is called a:codicil.rider.power of attorney.trustor.proxy.Question 16A prime reason for buying an annuity is to:save money for college educationstart a new businessaccumulate funds to invest in stocksgive you retirement income for the rest of your lifeget rich quickQuestion 17Who has the greatest need for life insurance?households with small childrensingles living alonesingles living with parentsdual income couplechildrenQuestion 18Jerry Lewis is thinking about purchasing some life insurance. He goes to a company that is owned by shareholders. What type of life insurance company has he gone to?A stock life insurance companyA debt life insurance companyA mutual life insurance companyAn exclusionary life insurance companyNone of the choicesQuestion 19Automobile liability insurance covers the insured when he or she is held responsible for losses suffered by others.TrueFalseQuestion 20In times of high inflation, personal incomes generally keep up with the rate of inflation.TrueFalseQuestion 21Similar to corporate shareholders, holders of mutual funds have a say in running the company, since they have equity interest in the pool of assets and a residual claim on the profits.TrueFalseQuestion 22Savings is the accumulation of excess funds by intentionally spending less than you earn.TrueFalseQuestion 23A business cycle is a pattern of economic activity that includes an expansion, peak, contraction, and trough.TrueFalseQuestion 24High-demand occupations tend to pay low salaries.TrueFalseQuestion 25The most expensive loans are available from:parents.friends.banks.finance companies.credit unions.Question 26Frank Wert wants to get a lower interest rate on his loan for the purchase of a new boat. He uses the boat as collateral for the loan. In which way is Frank reducing his lender’s risk?He is sharing the interest rate risk with his lenderHe is pledging valuable assets that can be seized if the loan is not repaidHe is taking a larger stake in the asset he is purchasingHe is repaying the loan over a faster period of timeNone of the choicesQuestion 27There are no costs involved in filing for a bankruptcy.falsetrueQuestion 28Kevin Brown rides his bicycle to work so that he doesn’t have to worry about getting in a car accident. How is Kevin managing his risk?Risk AvoidanceRisk ReductionRisk AssumptionRisk ShiftingRisk CreationQuestion 29Negligence refers to:failure to take ordinary and reasonable care.cancellation of insurance.property damage.high risk insurance coverage.common hazards in our society.Question 30Using a home security system is an example of ____________ risk.shiftingacceptingreducingsharingtransferring
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.