1) A portfolio is a collection of investments assembled to meet your investment goals.
2) After the budgeting period has ended, you need to add up the actual income received
and expenditures made during that period.
3) If the market price of an asset rises to exceed the striking price plus the premium, the
holder could make a substantial profit.
4) IRS Publication 17 provides most of the federal income tax information needed by
the typical taxpayer.
5) Medicaid pays for the costs of custodial nursing home care.
6) Mutual funds have distinct features that make this form of investing both unique and
investor-friendly.
7) Good documentation is important when seeking reimbursement through insurance.
8) The partnership theory of marriage rights is the basis for the presumed intent of
wedded couples to share their fortunes equally.
9) Tax losses are created when deductions generated from an investment (such as
depreciation and net investment losses) exceed the income from an investment.
10) Buying an insurance policy with a deductible is one way to assume risks that are
affordable.
11) A will is a written document that directs the disposition of assets after death.
12) Interest-earning checking accounts are offered through savings banks and mutual
savings banks as well as credit unions.
13) Section 529 college savings plans are state-sponsored.
14) An early termination charge may be levied if you decide to end a lease prematurely.
15) Most companies will not write disability income insurance policies for more than
60 to 80 percent of the insured’s after-tax earnings.
16) Puts are a conservative investment that can be used to reduce market risk.
17) The investment assets-to-total assets ratio compares the value of your investment
assets with your total assets.
18) A speculator is someone who buys an asset in the hope that someone else will pay
more for it in the near future.
19) Borrowing to finance a real estate investment is more expensive than borrowing to
buy one’s own home.
20) Lease agreements may contain a variety of restrictions that are legally binding on
tenants.
21) You immediately benefit from putting money in a tax-sheltered retirement account
because you can make the deposits with after-tax money.
22) A debt-to-equity method provides a quick idea of one’s financial solvency. The
larger the ratio, the riskier the likelihood of repayment. A ratio in excess of 0.25 is
considered high.
23) Property owned in joint tenancy with right of survivorship is distributed through
probate.
24) To earn the best returns, you should be invested in the market for only a handful of
days each year.
25) A living will addresses financial issues should one become mentally incapacitated.
26) The maximum down payment is based on the lender’s desired loan-to-value ratio.