1) Cash-balance plans typically give older workers less in benefits.
2) The asset-to-debt ratio compares total assets with total liabilities and is a broad
measure of a household’s financial liquidity.
3) An aggressive-growth fund may employ high-risk investment techniques, such as
borrowing money for leverage, short selling, hedging, and options.
4) A lawsuit filed against a landlord for nonperformance may be heard in small claims
court.
5) Bonds are debt obligations of the issuer.
6) A cash-flow statement summarizes transactions that have taken place over a specific
period of time.
7) A taxpayer in the 35 percent marginal tax bracket would pay less taxes by holding an
investment with capital gains over one year.
8) If losses from a premature death exceed resources available, life insurance is
probably needed.
9) An asset management account is a multiple-purpose, coordinated package that
provides a wide variety of financial services.
10) Interest rates on longer-term CDs are usually higher than the comparable rates on
shorter-term instruments.
11) The price/earnings ratio is a measure of investor confidence in a stock’s future
performance.
12) A mutual fund that has an income objective as its primary focus aims to earn regular
income in dividends or interest from the investments in its portfolio.
13) A stock with a positive alpha statistic means the fund did better than expected for its
level of risk.
14) Dealer holdback programs permit the dealer to retain a portion of the invoice price.
15) Once a life insurance policy has been in effect for two years, the company cannot
deny a claim because of errors in the application.
16) Pensions are paid to retirees by organizations such as the Social Security
Administration.
17) The largest portion of return on equity investments normally comes from capital
gains as opposed to dividend income.
18) Cash-value insurance is more expensive than term life insurance because of the
savings element included in the cash-value policy.
19) A preapproved credit card offer means that you will be granted credit, but the credit
card debt limit and APR will be determined after you apply for an account.
20) The term securities refers to the ownership instruments of common stock and
preferred stock only.
21) Credit cannot be used to own expensive products sooner.
22) A beneficiary designation on an asset allows that asset to go directly through the
probate process.
23) The abbreviation PITI stands for principal, interest, real estate taxes, and
investment.
24) Most of the contacts you make through networking will be in a position to offer you
a job.
25) A beneficiary designation is automatically set up in a mutual fund account without
having to complete any additional forms.
26) Whenever the cause of death for an insured person is suicide the company will
simply refund the collected premium.
27) The tax rate paid on your last dollar of income is called the average tax rate.