1. Your life situation is changed by

Multiple Choice

Seasonal changes in the year.

A promotion at your existing employment.

Dependent children remaining at home.

An interest rate increase.

A stock market crash.

2.

Investors purchase corporate bonds for

Multiple Choice

• dividend income

• decreased risk over T-bills

• to eliminate interest rate risk

• interest and possible capital gains

• voting rights

3.

Which of the following statements is false?

Multiple Choice

• Payments for a life annuity can continue until death.

• Annuities provide opportunities for retirement income to grow.

• An annuity has no investment limit.

• Transfers between annuity companies are tax-free.

• Annuities are legitimate tax shelters.

4.

What type of fee is a front-end or back-end fee?

Multiple Choice

• No-load fund

• Load

• Front-end load

• Back-end load

• Management fee