1) The ultimate authority of a fund’s track record is its current profile prospectus.
2) Present value is the current value of an asset (or stream of assets) that will be
received in the future.
3) Just like with credit bureau files you can challenge the accuracy of your medical
information bureau files.
4) Cash-value life insurance is sometimes called permanent insurance.
5) A mutual fund is an investment company that raises money by selling shares to the
public and then invests that money in a diversified portfolio of investments.
6) You decide how to invest the money in a defined-contribution retirement plan.
7) Redress means to right the wrong.
8) When an investment is termed a zero-sum game, the collective wealth of all investors
remains the same if transaction costs are ignored.
9) The proceeds of a life insurance policy are included in a person’s estate for federal
estate taxes purposes if the deceased, while alive, retained any ownership interest.
10) Driving under the influence of alcohol is an example of a hazard.
11) Nonsalary benefits are forms of compensation that result in the employee not
having to pay out-of-pocket money for certain expenses.
12) Automobile insurance combines property and liability coverage into a single policy.
13) A disadvantage for a buyer who places a limit order is that the investor might miss
an excellent opportunity if the stock price rises.
14) Funds that are deposited to a deductible retirement plan and not taxed at that time
are fully taxable when the money is withdrawn.
15) Present value is also known as discredited value.
16) The majority of new employer-sponsored pension plans are defined-benefit plans.
17) A debt service-to-income ratio of 0.36 or less indicates that disposable income is
adequate to make debt repayments.
18) A beneficiary designation enables the shareholder to name one or more
beneficiaries so that the proceeds go to the beneficiaries after going through probate.
19) Credit life insurance is generally a good buy for the borrower.
20) A surrender charge is a tax owed the government on the amount withdrawn from the
cash value accumulated on a life insurance policy.