32. (TCO 4) Your home insurance policy has a $500 deductible. If a windstorm causes $2,500 of damage to your home, what amount of the claim would the insurance company pay? (Points : 4) $2,000 $1,000 $1,500 $500 $2,500

Question 33. 33. (TCO 4) John Brown owns a home in Oakland, California and because of the risk of earthquakes, he decides to purchase _____ to cover potential losses. (Points : 4)

building and other structures additional living expenses personal property personal liability specialized coverage

Question 34. 34. (TCO 4) Martina has a policy that includes a $500 deductible and a coinsurance provision requiring her to pay 10% thereafter. Her medical bills total $5,500. What amount is she required to pay personally? (Points : 4)

$1,500 $500 $1,000 $5,000 $5,500

Question 35. 35. (TCO 4) If Mark Wright obtains a permanent disability as a result of an injury on the job, most likely he will receive _____ as a source of disability income. (Points : 4)

his employer Social Security worker's compensation an individual insurance policy his health insurance policy

Question 36. 36. (TCO 4) A(n) _____ is an addendum to a life insurance policy that can add additional benefits, such as an accidental death benefit payable to a beneficiary. (Points : 4)

accelerated benefits clause policy dividend guaranteed insurability clause second-to-die rider double indemnity rider

Question 37. 37. (TCO 4) If Larry has a term life insurance policy that is _____, this means that the payments to his beneficiaries would become smaller over time. (Points : 4)

straight renewable convertible decreasing accelerated

Question 38. 38. (TCO 6) The Capitalist Mutual Fund's net asset value is $28.25. The fund has liabilities of $3 million and 1,600,000 shares have been issued. What is the value of the fund's portfolio? (Points : 4)

$42 million $45.2 million $48 million $48.2 million $3 million

Question 39. 39. (TCO 6) A mutual fund that invests in companies with a market capitalization of less than $2 billion is called a(n) (Points : 4)

socially responsible fund. sector fund. small-cap fund. index fund. growth fund.

Question 40. 40. (TCO 6) A benefit associated with an investment in a real estate limited partnership is that the investor (Points : 4)

does not have to worry about capital gains tax. does not have to pay federal income tax. does not have to pay state income tax. can invest in a shopping center or large building by investing as little as $5,000. faces an investment that is very liquid.

Question 41. 41. (TCO 6) If Wilson Fischer has purchased 10 rare silver coins from a broker, he is investing in (Points : 4)

direct investment in real estate. indirect investment in real estate. precious metals. ceramics. gems.

Question 42. 42. (TCO 6) All of the following present characteristics of a defined benefit plan except (Points : 4)

employer contributions. formula-based benefits. investments managed by plan officials. limited government-guaranteed benefits. employee-required contributions.

Question 43. 43. (TCO 6) Chuck owns a home worth $140,000, a car valued at $30,000, and miscellaneous assets worth $7,500. He owes $75,000 on the home and $12,000 on the car, and has no other debts. His retirement account, in which he is fully vested, contains $17,500 in mutual funds. He is insured with a $250,000 term life insurance policy. What is his net worth? (Points : 4)

$83,000 $108,000 $195,000 $358,000 $445,000

Question 44. 44. (TCO 7) The benefits of establishing a trust include the fact that (Points : 4)

it can reduce or provide payment for estate taxes. it can allow you to avoid probate and transfer assets immediately to beneficiaries. it can free you from managing your assets, while providing you a regular income. it can ensure that your property serves a desired purpose after you die. All of the above

Question 45. 45. (TCO 7) If Barry has been named by Anderson to distribute his assets as outlined in his will and pay outstanding obligations, Barry will serve as a(n) (Points : 4)

executor. trustee. guardian. beneficiary. agent.