1-Which of the following features of a hedge fund might make it risky for investors?

• In a hedge fund, the older investors are given a return on their investment using the money contributed by the new investors.
• The investor is required by contract to deal solely with the owner of the scheme.
• A hedge fund is less regulated when compared to other investment bodies.
• The money in a hedge fund is mostly invested in bank products to obtain high returns.

2-joy takes out a term life insurance policy for 20 years and names Eva, her sister, the beneficiary.

What criterion should be fulfilled for Eva to receive the insurance payment?

• Eva receives the insurance payment if Joy develops a life-threatening disease during the 20-year period.
• Eva receives the insurance payment only if Joy dies after the 20-year period.
• Eva receives the insurance payment only if Joy dies within the 20-year term period.
• Eva receives the insurance payment at the end of 20 years even if Joy does not die.

3-Which of the following is true of short-term disability insurance?

• It replaces a portion of a person's salary until age 65.
• It is applicable only for people meeting an "any occupation" disability definition, not an "own occupation" definition.
• Individuals with higher incomes pay lower premiums.
• The premium increases as the coverage period increases

4-Which of the following should be included in an individual's will?

• The will should list the conditions under which the property can be taken back from the beneficiary.
• The will should contain the conditions that should be fulfilled by the beneficiaries to obtain access to the property.
• The will should appoint an executor who has the power and directions to dispose of the property.
• The will should provide details about how the property can be used by the beneficiary.

5-Yara receives a call stating that there has been some unusual activity in her credit report and that they would like to help Yara verify the account.

What should Yara do next in the given situation?

• Yara should disclose only her Social Security number to the caller and ask them to verify the account details.
• Yara should refrain from providing her account details and freeze her credit.
• Yara should stop using her credit and debit cards until she obtains more information.
• Yara should provide the caller with her credit card details and request the caller to email her a copy of their findings.

6-Which of the following is true of an irrevocable living trust?

• The trust cannot be changed once it is established.
• It is possible for the grantor to change beneficiaries after the trust has been established.
• The trust allows beneficiaries to make decisions regarding the use of the assets held in the trust.
• The grantor can withdraw all the assets out of the trust while they are still alive

7- The ads for an insurance company show how a person could potentially pay a higher price for medical treatments from their own pocket than they would pay if they had insurance.

Which of the following are the insurance companies using to build their customer base?

• Hyperbolic discounting
• Status quo bias
• Optimism bias
• Loss aversion

8-Suppose an investment scheme offers you a high return at a low risk.

What does an offerlike this indicate?

• It indicates that the scheme might be deceptive orfraudulent.
• It indicates that the risk will increase if new investors invest in the scheme.
• It indicates that the money in the scheme is managed by financial experts.
• It indicates that investors have faith in the success of the investment scheme.

9-Which of the following is a feature of the personal automobile policy (PAP)?

• The policy pays the fines incurred from parking tickets issued to the owner of an insured vehicle.
• The policy covers the cost to replace worn-out body parts of the insured vehicle.
• The policy covers damages to the insured vehicle caused by natural disasters, such as flooding.
• The policy pays the cost of the damages to anyone injured in an accident caused by the policyholder.

10- Hallie, a 35-year-old influencer, uses her problem-solving skill to choose a Roth IRA to save for retirement instead of a traditional IRA.

Is this a productive choice of plans for Hallie? Why or why not?

• It is not productive because she will pay a penalty if she withdraws any contributions to the account before age 59 1/2.
• It is not productive because the earnings in the account are not tax-deferred.
• It is productive because she can withdraw her contributions to the account at any time without paying tax on the amount.
• It is productive because her initial contribution to the account is tax deductible