1) Vision care insurance is typically written on a group basis as an employee benefit.
2) Seller financing is generally a shorter-term arrangement than financing with a
financial institution.
3) A target-date retirement fund gives you a diversified portfolio that automatically
shifts the asset mix away from equities and toward more conservative fixed-income
investments as you approach the year of your retirement.
4) A money market mutual funds include tax-exempt funds and government securities
funds.
5) An investment that faces high marketability risk also has high liquidity risk.
6) Installing a smoke detector in your home is an example of loss control.
7) All mandatory charges to be paid by the borrower must be included in the finance
charge.
8) The amount owed on a debt is the principal.
9) Buying a security with the hope that it will go up in value is called buying long.
10) There is no cost for placing a stop order if the order is never executed.
11) One can create a trust without an attorney.
12) You may claim both the American Opportunity credit and the lifetime learning
credit for the same year.
13) The credit limit on a credit card restricts the total cumulative amount of charges that
can be made by the borrower over the borrower’s lifetime.
14) The annual premiums for limited-pay policies are lower than those for whole-life
policies, other factors being equal.
15) Lenders often give a slight reduction in interest rates when a borrower pays a
smaller down payment.
16) A 12b-1 fee is a hidden load because it increases a shareholder’s earning power each
year without being described as a sales commission.
17) Once budget estimates are determined; one should not make any changes in the
budget for at least one year.