1) Probate is a court procedure to distribute assets of an estate.
2) Cash-value life insurance policies generally provide a policy illustration that charts
the projected growth in the cash value for given rates of return.
3) Short-term investors are usually more interested in current income than capital gains.
4) You can automatically save more for retirement as your income increases by setting
your savings target as a percentage of income rather than a specific dollar amount.
5) Consumer finance companies make both secured and unsecured loans and require
repayment on a monthly installment basis.
6) Putting money into tax-sheltered retirement plans is the single smartest idea in
personal financial planning.
7) Tax-sheltered retirement accounts allow investment earnings to grow more quickly
than traditional accounts because taxes do not have to be paid on earnings until the
money is withdrawn.
8) Electronic benefits transfer (EBT) cards are used by the government to pay military
personnel and provide Social Security and other government benefits.
9) Auto insurance typically pays only the value that it puts on the vehicle when an
automobile is totally destroyed.
10) Policy limits are the maximum dollar amounts that will be paid under the policy.
11) Liquidity is the speed and ease with which an asset can be converted to cash.
12) Traditional health insurance provides protection against financial loss resulting
from the perils of illness and injury.
13) A debt-to-equity method provides a quick idea of one’s financial solvency. The
larger the ratio, the riskier the likelihood of repayment.
14) Some stored value cards can be “reloaded” with additional funds.
15) Annual and transaction fees are not required to be included in the APR calculation
for a credit card because they cannot be known in advance.
16) Tangible assets are assets whose primary purpose is to provide maintenance of a
lifestyle.
17) Total risk comprises random risk and market risk.
18) Depreciation is the decline in value of an asset over time due to normal wear and
tear and to obsolescence.
19) The asked price is the highest price anyone has declared he or she wants to pay for a
particular security.
20) Typically, preferred stockholders do receive voting rights.
21) A stock’s book value usually exceeds its market price per share.
22) An acquisition fee cannot be included in the gross capitalization cost.
23) In general, stocks that are expected to grow rapidly have low price/earnings ratios.
24) It is relatively easy to compare coverage and prices among competing health
insurance policies.
25) Interest, dividends, and capital gains from investments in tax-sheltered retirement
plans are tax-free.
26) Financial ratios are numerical calculations designed to make assessments of
financial conditions more complex.
27) A consumer should tell the car salesperson how much he or she can afford for a car
so the salesperson can help him or her find an affordable car.