College PF

according to some financial experts like Suze Orman, how much of an investment portfolio should a 30 year old have a growth investments

80%

paul is looking for a low0interest, low-down payment loan for his first home, but he is not a verteran. he might be elgible for a

FHA Loan

Treton wants to buy a house but can provide only 10% down payment . he probably will be required to have

PMI

as a result of being an armed services veteran, dan should be eligible for a

VA loan

an individual who purchases an insurance policy is called

a policy holder

a policy that pays you back for actual expenses is called

a reimbursement plan

Mildred was diagnosed with terminal cancer and knows that she doesn't have a long to live. which of the following riders would allow her to receive cash now?

accelerated benefits

corporations use bonds for

all of the above are correct

a call feature

allows the corporation to buy outstanding bonds from current bondholders before the maturity date.

the process of spreading your assets among several different types of investments to lessen risk is called

asset allocation

This health insurance provision lets your insurer make direct payments to your doctor or hospital

assigned benefits

business failure risk can be due to:

bad management and/or unsuccessful products

amy bought a life insurance policy and named Ben as her beneficiary she has since died. who will receive the benefits from her policy?

ben

a stock issued by stable corporation that generally attracts conservative investors is called a.....stock

blue chip

cliff retired 10 years ago and wants to still own a few stocks. dividends are important to him, and he wants to invest in a large, stable corporation. he should purchase....stock

blue chip

if you have an interest rate subsidy from a home builder or real estate developer, you have a

buy-down

excessive buying and selling of securities to generate commissions is called

churning

Amanda wants to be part of the most basic form of ownership for a corporation. she should invest in

common stock

samantha was driving on the highway during a storm and hail dented her car. this damage would be covered under her

comprehensive physical damage coverage.

the set amount that you much pay toward medical expenses before the insurance company pays benefits is called

deductible

opal is real estate agent who represents the buyer as well as the seller. in some states, the buyers are required to sign a disclosure acknowledging that they are aware that opal is working as a

dual agent

Judy and james have a four year old child. they plan to purchase life insurance using the formula current incomex7x70%. which method are they using to determine their life insurance needs

easy method

which of the following is an account used to pay property taxes and homeowner's insurance?

escrow

terry wants to begin investing and needs some guidance because he is uncomfortable making investment decisions he should use a

full-service broker

a bond backed by the full faith, credit, and unlimited taxing power of the government that issued it is called a...... bond

general obligation

if your main focus is to have your investments increase in value, you are most concerned with

growth

barbara left a skateboard on her front steps. her neighbor tripped on the skateboard and was injured. the skateboard was a

hazard

what is the most important part of an insurance agent's job?

help you select the proper kind of protection within you financial boundaries

an investment that pays higher-than-average dividends is called

income

when choosing an investment, one should consider risk. the four primary risk components are:

inflation, interest rate, business failure, market

Stephen wanted to become one of the owners of GHHI corp. when it initially became available to the general public. he participated in the

initial public offering

if you do not pay back any of the loan amount for a portion of the loan period, you have an

interest-only mortgage

what is the most positive feature of whole life insurance listed below?

it builds cash value

This gives the landlord the right to take legal action against a tenant for nonpayment of rent or destruction of property.

lease.

a legal document that includes information about the due date of monthly rent is called

lease.

a discount security means that the current price is trading at

less than the face value

Devin wants to purchase DEF stock for a specified price $40 and he understands this request will executed after all previously received orders have been full filled.. he should use a

limit order

when sam applied for a loan, he was assured that his rate would not change if he closed within 30 to 90 days same had a... on the interest rate

lock

The type of health insurance coverage that takes up where basic health insurance coverage leaves off is

major medial expense

which of the following risks deals with fluctuations due to political or social conditions?

market

peter is a nasdaq dealer who matches buy and sell orders for ford. he is known as a...

market maker

annual reports

may be sent to all stockholders on an annual basis

which of following is a government health care plan?

medicare

the main goal when setting insurance goals is to

minimize personal, property, and liability risks

a corporate bond that is secured by various assets of the issuing firm is called a........bond

mortgage

private mortgage insurance

must be terminated automatically when the homeowner's equity reaches 22% of the property value at the time the mortgage was executed.

barbara left a skateboard on her front steps. her neighbor tripped on the skateboard and was injured. the fact that Barbara didn't put away the skateboard is called

negligence

NYSE stands for

new york stock exchange

the earnings per share equals

none of these

tammy understands how to research stocks and feels quite comfortable trading her own stocks using internet. she should use

online broker

during the closing for a home purchase, you should

pay all closing costs, settle last-minute details, and sign documents

a stock that typically sells for less than $5 per share 9or in some cases less than 1$ per share) is called a....stock

penny

anything that may possibly cause loss is called

peril

barbara left a skateboard on her front steps. a windstorm swept the skateboard up and through her window. the windstorm was a

peril

personal property insurance covers

personal property items up to 55-75% of the insured value of the home

the two basic types of risk that people face regarding potential property losses are

physical damage and damage caused by criminal behavior.

which of the following provisions require the policyholder to pay overdue premiums with interest in order to have coverage

policy reinstatement

what is the fee that a policyholder pays when an insurance company agrees to take the risk?

premium

The tax reform act of 1986

preserved the tax advantage of annuities but curtailed deductions for IRA's

which of the following is based on historical numbers?

price-earnings ratio

which of the following expenses is Not usually incurred by a tenant

property taxes

most people buy life insurance to

protect the people who depend on the insured form financial loss caused by his or her death

a reverse mortgage

provides older home owners with tax-free income in the form of a loan that is repaid when the home is sold or the home owner dies.

which of the following is an advantage of renting?

renters have fewer responsibilities for maintenance than home owners

the health insurance portability and accountability ac of 1996

sets federal standards to ensure that workers do not lose their health insurance if they change jobs

a fund to which annual or semiannual deposits are made for the purpose of redeeming a bond issue is called a....... fund

sinking

katrina was injured in an accident at work. the benefits she will recieve to cover part of her income will come from

social security

which of the following would you expect to earn just over 10% per year over the long term

stocks

gavin has owned MNOP stock fro several years and has seen the stock increase in value from $20 to 35$ he wants to "lock in" his gains, so he needs to place an order that will sell his stock at the next available opportunity after its market price drops to $33. what kind of order should he use?

stop-loss order

the opportunity to have another person take over rent payments and live in the rental unit called :

subletting

which of the following is a disadvantage of renting?

tenants cannot take tax deductions for mortgage interest and property taxes.

another name for temporary life insurance is

term life

which of the following does not describe a growth company?

the company pays a large dividend

most tenants sign a lease. which of following is a part of a lease agreement?

the conditions under which the landlord may enter the apartment

Georgia was supposed to pay her premium by the 15th of the month. which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium (without penalty)

the grace period

which of the following statements is correct?

the internet provides websites that may be more up to date and thorough than printed materials.

jackson was interested in purchasing low-value securities that were not listed on the NYSE. he probably used.....to complete his transaction

the over the counter market

which of the following is not a feature of whole life insurance

the policy will return all premiums if you survive to the end of the policy

why does a company split its stock?

the stock is trading at a high price, and the company wants to bring the price in line with a theoretical ideal range

most people receive heatlh insurance under a group from

their employer

a policy that supplements your basic personal liability coverage is called

umbrella policy

another name for permanent life insurance is

whole life