Please answe the following true or false questions

Extra Credit Assignment True/False Questions 1. The primary function of insurance companies is to compensate policy holders or their 2. In a variable life policy some of the policyholder's premium payments are in eficiaries if some specific adverse event occurs. vested in variable rate investments usually chosen by the policyholder. 3. In a universal life policy the cash value of the contract grows at a fixed rate set by the life insurer 4. A 65 year old person has saved $550,000 and wishes to receive 10 annual annuity payments beginning in one year. If the annuity rate is 6%, he can expect to receive $79,425 per year. outs. 5. Life insurance policy reserves are the estimated current worth of expect 6. If a foreign currency appreciates, that country's goods and services become relatively more expensive for U.S. buyers. 7. A U.S. firm agrees to import textiles from Hong Kong and pay in 90 days. The invoice requires payment in Hong Kong dollars. The U.S, importer could hedge this currency risk by buying the HK dollar forward. 8. If you can convert 150 Swiss francs to $90 the exchange rate is 1.67 francs per dollar 9. If the dollar is initially worth 120 yen and then the exchange rate changes so that the dollar is now worth 115 yen, the value of the yen has depreciated. 10. If the US has inflation of 3% and Europe has inflation of 5%, the value of the Euro should increase, ceteris paribus. Multiple Choice Questions 11. The primary regulator of insurance firms is the A) NAIC B) McCarran-Ferguson Commission FDIC D) State insurance regulator E) SEC