Q1. Which of the following will likely increase the premium of long-term care insurance?

Select one:

a. Choosing to receive benefits for a limited period

b. Having a co-insurance provision

c. Waiting until you are retired to obtain the insurance

d. Having a longer waiting period before the policy goes into effect

Question 2

The disadvantage of leasing a vehicle is

Select one:

a. the consideration of the resale value at the end of the lease.

b. there is no equity in the car.

c. the responsibility for maintenance costs.

d. the cost of finding a buyer for the car at the termination of the lease.

Question 3

Which of the following is not a cash outflow?

Select one:

a. Telephone bill

b. Rent

c. Car payment

d. Salary

Question 4

Which of the following is true about management expense ratios (MERs)?

Select one:

a. You need to subtract the MER from the posted return to figure out performance.

b. All types of mutual finds have similar MERs.

c. MERs only include manager and sales expenses.

d. Mutual funds with lower MERs tend to outperform those with higher.

Q5.

You wish to own stock while keeping your risk as low as possible. Which of the following actions would accomplish this goal?

Select one:

a. Purchasing U.S. Treasury securities

b. Purchasing shares of Exxon and GM

c. Purchasing a stock mutual fund

d. Purchasing shares of Exxon and GM on margin