1. Which of the following is the major advantage of term insurance relative to life insurance policies like whole life and universal life that build up cash values?

a. No need for a physical examination when renewing

b. Constant price across a person's lifetime

c. Readily convertible to cash

d. Provides a greater choice of investments

e. Has lower initial premiums

2.Which of the following betas probably indicates a speculative stock that is more risky and volatile than a broad market index of similar investments?a

a. -1.0

b. 0

c. 0.5

d. 1.0

e. 2.0

3. Changes in the value (or price) of a bond correspond most closely to changes in which of the following economy-wide factors

a. Unemployment rate

b. Interest rates

c. Balance of trade with foreign countries

d. Federal budget surplus or deficit

e. Control of Congress by Democrats or Republicans