B. selective underwriting of insureds. C. investment in investment grade securities onl D. use of deductibles. needs more liquidity when selling a high proportion of A. one-year renewable term policies B. annuities C. thirty-year term policies. D. whole life policies. 6. A life insurance company A. are taxed at a lower rate than individuals', a major aspect of their B. are taxed only on the interest income, not the capital gain 7. The capital gains and earnings of mutual funds s, a major aspect of their ty the fund level as long as they distribute a very high proportion of C. are not taxed at earnings to shareholders. D. are not taxable for either the fund or the fund investor. 8. Private pension plans are A. available only to people who work. B. illegal. C. a personal financial plan provided for a fee by a financial planner. D, pensions provided by and to non-governmental. private sector businesses organizations, and their workers. 9. A noninsured pension plan will A.be managed by an appointed trustee to invest funds contributed for the benefit.of future pensioners. B. not be covered under the Pension Benefit Guaranty Corporation. C. always be underfunded. D. will be covered by term insurance, not whole life. 10. Which statement is not true about life insurance companies? A. they have relatively predictable inflows and outflows. B. their liabilities are long-term in nature. C. they sell contracts that offer financial protection against premature death and agai living too long. D. they invest heavily in short-term highly marketable securities. 11. Mutual oriented investors because I fund management companies offering families of funds are attractive to pension A. they provide high return, low risk funds. B, they provide an opportunity to alter the investment portfolio without rolling over the pension monies. C. they provide significant "load" fees for customers D. they are not regulated like most mutual funds are