please help with the following

FP 100

1. Which is a common reason that most people retire at age 65?

1. Minimum age for Medicaid
2. Minimum age for Social Security and Medicaid
3. Minimum age for Social Security
4. Minimum age for Medicare

2. If your company retirement plan considers how long you have worked for the company and your final salary in determining your retirement benefit from the plan, you have a

1. defined-benefit plan
2. individual retirement plan
3. defined-contribution plan
4. independent retirement plan

3. What happens when the total payroll taxes collected for Social Security exceed the total being paid out in benefits to current retirees?

1. The SSA distributes the excess to the lowest-earning beneficiaries.
2. The SSA invests the excess in special-issue government bonds.
3. The SSA returns the excess as tax refunds.
4. The SSA uses the funds to invest in U.S. Series EE bonds.

4. Which of the following is not one the causes of the projected insolvency of Social Security?

1. Higher incomes lead to higher benefits.
2. People are living longer.
3. The baby boom generation is larger than the generation following it.
4. All of these options are considered potential causes.

5. Contributions to a traditional IRA are tax _______ and withdrawals in retirement are taxed as _______ income.

1. deductible; long-term capital gain
2. free; long-term capital gain
3. free; ordinary
4. deductible; ordinary

6. Evan works for an employer that does not provide a retirement plan as a benefit. He earns $175,000 per year. He plans to fund his own retirement account through his local bank. Which of the following would best suit Evan?

1. A traditional IRA
2. A taxable account
3. An annuity
4. A Roth IRA

7. In recent years, the rise in college tuition has _______ the rate of inflation.

1. greatly outpaced
2. been slightly higher than
3. nearly matched
4. been slightly lower than

8. The Lifetime Learning tax credit is a credit of

1. 20 percent of the first $5,000 of college expenses up to a maximum of $1,000 for every eligible dependent who has incurred these expenses during the first two years of college.
2. 30 percent of the first $5,000 of college expenses up to a maximum of $1,500 for every eligible dependent who has incurred these expenses during the first two years of college.
3. 20 percent of the first $10,000 of tuition and fees up to a maximum of $2,000 for every eligible dependent who has incurred these expenses during the year.
4. 30 percent of the first $5,000 of college expenses up to a maximum of $1,500 for every eligible dependent who has incurred these expenses during the year.

9. The American Opportunity tax credit is a tax credit up to a maximum of

1. $500 for every eligible dependent who has incurred college expenses during the year.
2. $1,500 per year for eligible expenses incurred during a child's first two years of college.
3. $2,500 for every eligible dependent who has incurred college expenses during the year.
4. $2,000 per year for eligible college expenses incurred during a child's first two years of college.

10. Which of the following is the recommended guideline for the maximum amount to borrow in order to keep your monthly payments manageable?

1. Expected household income after graduation
2. Expected first-year salary for your chosen job
3. Average salary for your chosen job
4. Expected first-year salary for your chosen job times 1.25

11. What type of loan starts accruing interest at the time of disbursement?

1. Subsidized
2. Pell
3. Unsubsidized
4. All federal loans

12. If you are not working, you can apply with your loan servicer for which of the following to postpone monthly payments.

1. Forgiveness
2. Unemployment
3. Payment reduction
4. Deferment

13. Interest earned on municipal bonds is generally

1. tax-deferred until the bonds are sold.
2. tax-deferred until the bonds mature.
3. federal income tax-free if held longer than one year.
4. federal income tax-free.

14. Dollar cost averaging will result in

1. a higher average purchase price than the average price over the long term.
2. a lower average purchase price than the average price over the long term.
3. the highest average return of any investment strategy.
4. a greater return than a buy-and-hold strategy if prices are rising.

15. _____________ are required to report their financial performance to the owners of the company in an annual report.

1. All U.S. companies
2. Publicly held companies
3. Privately held companies
4. All companies doing business in the United States

16. Which of the following is the riskiest asset class?

1. Large company stocks
2. Derivative securities
3. Corporate bonds
4. Treasury bonds

17. Goodroad Transportation Company has earned a profit of $25 million for the year. In order to reward its shareholders, it intends to pay a total dividend of $8 million. Good road will pay the dividend from

1. its profits.
2. the original capital investment of its shareholders.
3. tax refunds it gets from the taxing authority.
4. the new sale of equity shares to the public.

18. Which of the following would be considered a commodity?

1. Real estate
2. Stock option contract
3. Gold
4. Mortgage-backed bond

19. Which of the following statements regarding default risk is true?

1. In a bankruptcy proceeding, the value of an equity investment is likely to be zero.
2. Default risk is greater for short-term securities than for long-term securities.
3. In a bankruptcy proceeding, the value of a debt investment is likely to be zero.
4. Default risk is greater for illiquid investments.

20. A bear market occurs when the market is

1. generally rising.
2. generally declining.
3. very volatile.
4. fairly stagnant.

21. Which type of investor usually demands a risk premium to be willing to invest in risky assets?

1. Equity investors only
2. Bond investors only
3. Mutual fund investors only
4. All investors

22. You invest in Sunland Corp. stock at a price of $65.75 per share. At the end of one year, you sell your shares for $73.75 per share and you received a $2.05 per share dividend during the year. What is your return on investment for this period?

1. 11.73%
2. 15.29%
3. 13.96%
4. 9.05%

23. A comparison of two portfolios shows the following:

Portfolio A is invested in stocks: 70 percent, bonds: 20 percent, and cash: 10 percent.

Portfolio B is invested in stocks: 30 percent, bonds: 40 percent, and cash: 30 percent.

What can be concluded about the investors to whom these portfolios belong?

1. Portfolio A represents a younger person, probably in their 40s.
2. Portfolio B represents a younger person, probably in their 40s.
3. Portfolio B represents a very young person, probably in their late 20s.
4. Portfolio A represents a retired person, probably in their late 60s.

24. Financial advisors recommend that you invest no more than ______ percent of your total portfolio in any single investment.

1. 5
2. 10
3. 15
4. 20