1. Which of the following statement(s) is(are) incorrect? I. For people age 65 and older, Medicare is a major source of medical insurance coverage II. Part B covers certain hospital costs and home health care III. Medicare does not cover all medical costs IV. Gaps in Medicares coverage are insignificant V. Part A covers, among other items, post-hospital skilled nursing home care, and blood

a. II and IV

b. I

c. II only

d. III and IV

e. II, III and IV

2. Which of the mutual funds should an investor purchase if he or she cannot tolerate stock market fluctuations?

		a. Growth and income
		b. Income
		c. Index
		d. Balanced
		e. Maximum capital gain

3. A whole life policy differs from a term policy in that:

		a. premium on a whole life policy increases each year
		b. no premiums are required when the insured turns age 65
		c. the rate on a whole life policy is always lower than that charged on a term policy
		d. a whole life policy accumulates cash value, whereas a term policy does not
		e. none of the above