Question

What is one of the major advantages to having an "interest only" line of credit?

options:

	payment flexibility
	the principal on the loan doesn't get paid off
	high interest rate
	high fees

Question

Robin works as a brain surgeon and he wants to have the best possible disability insurance. What is the best occupational definition of disability coverage for his situation as cost is not an issue?

options:

	any occupation
	regular occupation
	own occupation
	no occupation

Question

Frank purchased a new car for $50,000. He used $10,000 from his line of credit and $40,000 from lotto winnings. How did this purchase affect his net worth?

options:

	his net worth increased by $40,000
	his net worth increase by $50,000
	his net worth decreased by $30,000
	his net worth decreased by $20,000

Question

Julia purchased life insurance to provide for her daughter Emily, in the event of Julia's death. Which of the following is true?

options:

	Julia is the policy owner and the beneficiary
	Julia is the life insured and Emily is the policy owner
	Julia is the beneficiary and the life insured
	Julia is the policy owner and the life insured and Emily is the beneficary

Question

Calculate the net worth using the following financial data:

Cash $20,000

House market value $650,000

Mortgage $450,000

Monthly mortgage payment $3,700

Mutual funds $25,000

Vehicle loan owing $15,000

Minimum monthly credit card payment $400

Net monthly income $5,200

Vehicle payment $350 per month

Toyota tundra value $60,000

Credit cards owing $20,000

Line of credit $0 owing but $50,000 limit

options:

	$260,000
	$270,000
	$280,000
	$290,000

Question

Where would the amount owing on an credit card and the minimum payment required be listed?

options:

	net worth asset and cash flow variable income
	net worth liability and cash flow income
	net worth liability and cash flow fixed expense
	net worth asset and cash flow variable expense

Question

Janice received a loan of $50,000 from her aunt Maggie. She only has to pay back 50% of this loan in the next 5 years at an interest rate of 2% compounded annually . What is the amount of the monthly loan payment? C/Y = 1; P/Y = 12

options:

	$825.54
	$850.45
	$876.20
	$960.56

Question

How would you describe the risk and severity of dying for a healthy 30 year old non-smoker with two young children?

options:

	low probability; low severity
	high probability; high severity
	low probability; high severity
	high probability; low severity

Question

A cash flow statement shows?

options:

	all available resources, including both income and wealth.
	the amount of income available
	the difference between assets and liabilities at a specific date.
	the difference between income and expenses over a specific time period.

Question

The main driver of life insurance premium mortality cost is which of the following?

options:

	gender
	interest rates
	health risks
	age