1) Mark has a small business and he frequently dips into his savings to keep the firm afloat. He decides to invest all of his savings to maximize his returns over the next 5 years. He has alow to moderate level of risk tolerance and invests all his savings in real estate.

Why is real estate not a productive choice of investment for Mark?

A) Real estate investments decrease in value over time.

B) Real estate is the most liquid asset one can own.

C) Real estate has low marketability risk.

D) Real estate is not a liquid investment option.

2) Miles needs to withdraw $4,500 from his Roth IRA to pay his medical bills.

In which of the following scenarios is the money withdrawn from theRoth IRA considered a qualifying distribution for Miles?

A) Miles is 58 years old and withdraws only the principal portion from his Roth IRA.

B) Miles withdraws money from his Roth IRA to make a down payment for his second home.

C) Miles is disabled and withdraws his Roth IRA balance within 3 years of opening it.

D) Miles is 65 years old and has been investing in the Roth IRA for the last 10 years.

3) Tim is buying a house by taking out a mortgage.

Which of the following protects either the lender or Tim in case someone else says they have a claim on the property after purchase?

A) Mortgage insurance premium

B) Title insurance

C) Appraisal fee

D) Homeowner's insurance

4) Using your problem-solving skills, identify the financial alternative among the following that provides loans with a reasonable rate of interest.

A) Title loans

B) Personal loans from the bank

C) Pawn shops

D) Payday lenders