Which of the following statements regarding Social Security benefits is true?

1. Social Security benefits are retirement benefits extended only to self-employed people.
2. For the average wage earner, Social Security benefits match a percentage of the income earned in the year before retirement.
3. Social Security benefits are available to military personnel only.
4. Social Security benefits may be reduced if the recipient is under age 55 and still gainfully employed.
5. To obtain Social Security benefits, you must participate in enough quarters.

A fund that invests in only one or more industries that are associated with each other is a _____ fund.

1. money market
2. maximum capital
3. sector
4. balanced
5. bond

Single premium annuities result in a lump-sum payment of benefits.

1. True
2. False

The purpose of the Social Security Act of 1935 was to basic program to:

1. ensure retirement income equal to 75% of preretirement income.
2. pay for retirees'health care costs.
3. replace defunct pension fund plans.
4. provide a basic and adequate income to eligible retirees.
5. levy a tax on the retirement funds of federal civilian employees.