42-)

Which mortgage option is best in the following scenario? The Wongs are purchasing their first home for $250,000 and financing with a $200,000 mortgage. They expect interest rates to stay the same for the next seven years at least, expect no increase in their incomes, and prime rate is three percent. Their primary goal is to pay down the principal as quickly as they can, and they can afford monthly mortgage payments of $1200.

Select one:

a. A five-year open VRM at prime plus one percent

b. A seven-year closed fixed mortgage at six percent

c. A five-year closed convertible VRM (variable rate mortgage) at prime

d. A five-year closed fixed rate mortgage at five percent

41-)

Which mortgage option is best in the following scenario? The Wongs are purchasing their first home for $250,000 and financing with a $200,000 mortgage. They expect interest rates to stay the same for the next seven years at least, expect no increase in their incomes, and prime rate is three percent. Their primary goal is to pay down the principal as quickly as they can, and they can afford monthly mortgage payments of $1200.

Select one:

a. A five-year open VRM at prime plus one percent

b. A seven-year closed fixed mortgage at six percent

c. A five-year closed convertible VRM (variable rate mortgage) at prime

d. A five-year closed fixed rate mortgage at five percent

43-)

One of the advantages of no-fault automobile insurance is that

Select one:

a. it results in higher jury awards to victims.

b. the injured receive immediate medical treatment through their own insurance.

c. the drivers who are at fault face no penalties for their risky behaviours.

d. it does not use the legal system so the overall costs are much lower.

45-)

If your retirement plan has a vesting requirement, it must be

Select one:

a. a defined-contribution plan.

b. a defined-benefit plan.

c. an employer sponsored retirement plan.

d. a locked-in retirement plan.