1.A tax credit is an amount subtracted directly from the amount of taxes owed.
Answer:TRUE2.The incontestability clause
stipulates that the insurance company can dispute the validity of the policy anytime during
the insured’s lifetime.
Answer:FALSE3.Saving now for the future
requires tackling the trade-offs between spending and saving.
Answer:TRUE4.Exemptions are deductions
for yourself, your spouse, and qualified dependents that you can deduct from adjusted
gross income.
Answer:TRUE5.Estate planning is a subject
most people would rather avoid: deathyour own or that of your spouse.
Answer:TRUE6.Most people can qualify for
reduced Social Security retirement benefits at age 62.
Answer:TRUE7.The principal purpose of
taxes is to control economic conditions.
Answer:FALSE8.Replacement cost for
settling property insurance claims is less costly than the actual cash value method.
Answer:FALSE9.Pension plan portability
enables you to carry earned benefits from one employer’s pension plan to another’s when
you change jobs.
Answer:TRUE10.Your federal income taxes
will probably be lower during the retirement years.
Answer:TRUE11.A sinking fund is a fund to
which deposits are made each year for the purpose of redeeming a bond issue.
Answer:TRUE12.A joint-and-survivor
annuity pays its installments until the death of the last designated survivor.
Answer:TRUE13.A limited partner cannot
take part in the management of the partnership.
Answer:TRUE14.The total return on a stock
is equal to the current market value of the stock minus the investor’s purchase price.
Answer:FALSE15.Physician expense
insurance coverage excludes visits to the doctor’s office, x-rays, and lab tests.
Answer:FALSE16.Dollar cost averaging
helps investors avoid the problem of buying high and selling low.
Answer:TRUE