1) Through the Social Security system, current workers support current retirees.
2) Stock brokerage firms earn commissions on clients’ stock transactions.
3) An individual’s success in giving up smoking is an example of loss control.
4) Modified life insurance isi primarily designed for people whose life insurance needs
are high but who cannot yet afford the high cost of cash-value life insurance.
5) Repossession is a legal proceeding by which the lender seizes an asset for
nonpayment of a loan.
6) Term life insurance is often described as pure protection because it pays benefits only
if the insured person dies within the time period of the policy.
7) The HO-6 form is especially written to meet the needs of condominium owners.
8) Common or preferred stocks are often called equities.
9) The market price for a company’s common stock is usually higher than its book value
per share.
10) Alternative dispute resolution programs are industry- or government-sponsored
programs that provide an avenue to resolve disputes outside the formal court system.
11) Comparing salary offers from employers located in different cities can be difficult
without sufficient information on the approximate cost of living in each community.
12) Most returns earned are derived from owning the right asset categories rather than
specific investments.
13) If you inherit a 401(k) retirement account from someone other than a spouse you
can avoid taxes by transferring the balance directly into an inherited IRA in your name.
14) Disability income insurance is probably the type of insurance most often
overlooked by individuals and families.
15) By analyzing financial statements, a person can assess his or her financial condition
and progress.
16) Financially successful people often pay U.S. federal income taxes at the 25 percent,
or higher, marginal tax rate.
17) You might want to sell an option to prevent further losses if its market price is
dropping.
18) Mutual savings banks are called “mutual” because the depositors own the institution
and share in the earnings.
19) Closing costs may vary from 2 percent of the mortgage loan amount up to 5
percent.
20) The level of financial literacy is high among Americans today.
21) Cash dividends are paid only on cash-value life insurance policies.
22) Everything else being the same, an investor would prefer an asset management
account that ‘sweeps” weekly rather than daily.
23) Courtesy overdraft/bounce protection can be very helpful if the institution will
honor your debit card even if you have insufficient funds.
24) All property included in an estate must go through probate.
25) A commission-only financial planner/broker charges an up-front fee for providing
services.
26) The benefit period in a disability income policy is the minimum period of time for
which benefits will be paid.