FC 594 Test 1

subject Type Homework Help
subject Pages 4
subject Words 494
subject Authors Jack Kapoor, Les Dlabay, Robert J. Hughes

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page-pf1
1)
Which of the following might qualify Amy Farmer for a premium discount on her
automobile insurance?
A.Completing a driver's training program
B.Earning straight A's in college
C.Installing an alarm system in her car
D.Participating in a carpool five days a week
E.All of these might qualify Amy for a discount.
2)
A market for existing financial securities that are currently traded among investors is
called the ____________ market.
A.technical
B.fundamental
C.efficient
D.secondary
E.primary
3)
Which of the following is a major source of revenue for local governments?
A.Real estate property tax
B.Excise tax
C.Estate tax
D.Inheritance tax
E.Social Security tax
4)
Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in
liabilities.
A.0.28
B.2.57
C.0.39
D.0.64
E.1.25
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5)
Defective house wiring is an example of a:
A.hazard.
B.peril.
C.risk.
D.speculation.
E.planned danger.
6)
ABC Corporation holds its annual meeting in April. Maxine Star, who owns stock in the
company, cannot attend the meeting. She can vote by:
A.voluntary certificate.
B.preemptive right.
C.proxy.
D.cumulative certificate.
7)
Another name for lifecycle funds is:
A.balanced funds.
B.funds of funds.
C.target-date funds.
D.asset allocation funds.
E.money market funds.
8)
Definite financial obligations are referred to as:
A.fixed expenses.
B.variable expenses.
C.cash flow.
D.insolvency.
E.budget variance.
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9)
Which of the following attributes would not be used by an Underwriter to determine the
appropriate premiums to charge for insurance?
A.Marital status
B.Gender
C.Health
D.Age
E.Occupation
10)
Most income tax documents should be kept for _____ year(s).
A.0
B.1
C.3
D.5
E.7
11)
Greg Rossman likes to play golf. This would be an example of a(n) _________ factor
that influences his purchasing decision.
A.economic
B.social
C.personal
D.global
E.financial
12)
Which of the following refer to permanent insurance?
A.Whole life
B.Straight life
C.Ordinary life
D.Cash-value life
E.All of these are types of permanent insurance.
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13)
The 25 in 50/100/25 refers to ____________ coverage.
A.collision
B.bodily injury liability
C.comprehensive physical damage
D.medical payments
E.property damage liability
14)
Which of the following methods calculates interest on the full amount of the original
principal?
A.Declining balance method
B.Add-on interest method
C.Simple interest method
D.Adjusted balance method
E.Average daily balance method

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