1) When lenders accept less than a 20 percent down payment, mortgage insurance is
generally required.
2) By law, interest points must be included when calculating the APR for the loan.
3) A share draft account is the credit union version of a NOW account.
4) An insurance policy will pay the actual loss suffered not to exceed the policy limits.
5) Net asset value of a mutual fund is the price one pays (excluding any transaction
costs) to buy a share of a mutual fund.
6) Bonuses given by employers must be reported to the IRS on your income tax return.
7) Automobile liability insurance covers the insured when he or she is held responsible
for losses suffered by others.
8) Domestic partners usually have no legal claim on the estate of their deceased
partners.
9) A beneficiary is a person or organization designated to receive a benefit, such as an
IRA or 401(k) plan.
10) The guaranteed insurability option permits (for an extra cost) the cash-value
policyholder to buy additional stated amounts of life insurance at stated times in the
future without evidence of insurability.
11) Income taxes must be paid when distributions are taken from most qualified
retirement plans.
12) You can estimate the trade-in value of your car on the websites for the National
Automobile Dealers Association, Edmunds, or Kelley Blue Book.
13) A bond selling at more than its face value is selling at a premium.
14) Short-term investing requires more diligent monitoring than long-term investing.
15) The amount of income tax withheld can be found on one’s W-2 form.
16) A health insurance policy with high annual limits will provide total protection.
17) One can collect Social Security retirement benefits based on an ex-spouse’s
earnings if the marriage lasted at least ten years and both ex-spouses are at least 60
years old.
18) Federal agency bonds pay slightly lower rates of interest than comparable-term
Treasury securities.
19) A balance sheet describes an individual’s financial progress over a period of time,
generally a year.
20) If you put money into collectibles, limit your investment to no more than 20 percent
of your portfolio.
21) Long-term investors seek growth in the value of their investments that equals the
rate of inflation.
22) Both preferred and common stockholders normally share in capital appreciation
when a company grows.
23) Dual-career couples normally have an easier time resolving quality-of-life issues.