1) Leverage is the speed and ease with which an investment can be converted to cash.
2) Insurance that covers the cost of one’s annual vision checkup and one pair of glasses
annually would typically be considered important insurance.
3) Convenience use of a credit card is justified only if the card balance is paid in full by
the end of the year.
4) A grace period allows the premium on a health plan policy to be paid late for up to 90
days with the policy remaining in force.
5) When general interest rates in the economy decline, the market value of bonds
decrease.
6) A common definition of a lemon is a vehicle that has been in for repairs at least two
times for the same problem in the first year after purchase.
7) It is in your best interest to sign an insurance release as soon as possible after a
bodily injury loss has occurred.
8) Index funds are an example of managed funds.
9) Money deposited in mutual funds is insured by the federal government.
10) An HRA is a tax-deductible savings account into which individuals and/or their
employers can deposit tax-sheltered funds for use to pay medical bills including the
deductibles and other out-of-pocket costs required by a high-deductible plan.