QUESTION 31

1. A financial asset is only worth ______.

   		the past cash flow it produced
   		the future cash flow it produces
   		cash flow is not important with financial assets

2 points

QUESTION 32

1. Time value of money means _____.

   		a dollar tomorrow is worth more than today
   		dollar timing is irrevelant
   		dollars are variable
   		a dollar today is worth more than a dollar tomorrow

2 points

QUESTION 33

1. Nancy bought a house 12 years ago for $350,000 and she just made her 12th payment. The bank loaned her the money at a 3.5% annual interest rate for 30 years with monthly payments. She wants to sell the house today. What is the loan balance she would have to pay off?

   		$96,982.27
   		$132,373.76
   		$184,585.48
   		$251,601.90

2 points

QUESTION 34

1. _______ insurance protects against liability for harm the insured may cause to others as a result of product failure or accident.

   		Casualty
   		Property
   		Universal
   		Comprehensive

2 points

QUESTION 35

1. _______ occurs when an investor pays less for a security than it will be worth when it matures and the increase in price provides a return.

   		Compounding
   		Maturation
   		Discounting
   		Normalizing