1) Implied warranties are in effect unless a product is sold as is.
2) Signing up for a “free” credit reporting service where you are automatically renewed
on a fee basis unless you cancel at the end of the free period is an example of a negative
option plan.
3) One must file a tax return to receive the earned income credit.
4) Negative amortization is a possibility with a fixed-rate graduated-payment mortgage.
5) The principles of planned buying are especially useful when you are purchasing
vehicles and other expensive products.
6) Identity theft is the most commonly perpetrated form of consumer fraud in the U.S.
7) The market price of preferred stock is sensitive to interest rates.
8) Defensive stocks have betas of less than 1 .
9) A group health care plan is sold collectively to an entire group of persons rather than
individuals.
10) Many communities have a multiple-listing service (MLS), which is an information
and referral network among real estate brokers allowing properties listed with a
particular broker to be shown by all other brokers.
11) Health insurance will generally cover an illness or injury that started during the
period one was covered, even if the policy expires before treatment ends.
12) When the economy is in a slump, the federal government often lowers the interest
rates on Treasury securities.
13) The average corporation pays out 40 to 60 percent of its after-tax profit in cash
dividends to stockholders.
14) The index of leading economic indicators is a composite index that suggests the
future direction of the U.S. economy.
15) Subrogation rights allow an insurer to take action against a negligent third party
(and that party’s insurance company) to obtain reimbursement for payments made to an
insured.
16) The higher the beta on a stock, the higher the rate of return an investor should
require.
17) Aggressive investors must be willing to suffer substantial short-term financial
losses.
18) Beginning in 2013, new car manufacturers will be required to disclose the vehicles
overall environmental impact in a window sticker.
19) The health benefits provided under Medicaid differ from state to state.
20) The goal of monetary asset management is to maximize interest earnings and
minimizing fees while keeping funds safe and readily available.
21) Funds in a dependent care FSA account may be used to pay for the care of a
dependent as long as he or she is younger than age 18.
22) The price people pay for life insurance depends on their age, health, and income.
23) Consumer-driven health care is an approach to health care protection where the
consumer elects a health care plan with a low deductible and high overall policy limits.
24) A balance sheet shows flows of income in and expenses out of your finances for a
given period of time.
25) A retail credit card allows the holder to make purchases at numerous businesses.
26) Preferred stockholders are the first to receive extra dividends resulting from higher
than expected profits.
27) To avoid income tax withholding on funds being transferred into a rollover IRA, the
payment must be made directly to the employee.
28) An insurance application must be approved by the insurance company before any
legally binding insurance contract is formed.