1) Investing in mutual funds that are part of the same family of funds can simplify one’s
finances.
2) A lien is a legal right to seize and dispose of (usually sell) property for payment of a
claim.
3) The current yield on a bond can be either higher or lower than its coupon rate of
return.
4) Most bonds are callable.
5) The Truth in Lending Act requires lenders to state the finance charge both in dollars
and as an annual percentage rate (APR).
6) Portfolio diversification is the practice of selecting a collection of investments that
have dissimilar risk-return characteristics.
7) The primary focus of savings banks is to accept savings from consumers and provide
mortgage and consumer loans.
8) The sum total of all economic activity is measured by the gross domestic product.
9) If you notify the card issuer within two days of a loss or theft, you are not legally
responsible for any fraudulent usage of the card.
10) A stock brokerage firm is a licensed financial institution that specializes in selling
and buying stocks, bonds, and other investment alternatives.
11) Municipal bonds almost always offer a lower stated return than other bonds.
12) There are some cases when you should file a federal income tax return even if you
are not legally required to do so.
13) The term cooperative describes a method of ownership for housing rather than a
type of building.
14) An automatic funds transfer agreement is usually the most expensive way to avoid
bad check fees.
15) Cash-value accumulations in life insurance are taxed as they are earned.
16) Disability income insurance plans may cover long-term but not short-term
disability.
17) Experts estimate that retirees need approximately 50 percent of their preretirement
income to live comfortably.
18) Losses affecting society as a whole are insurable because of the large number of
individuals affected.
19) Most financially successful taxpayers have to pay federal income taxes at the 15
percent marginal tax rate.
20) The main purpose of a cover letter is to indicate a desired a salary.
21) The NASDAQ system is used to monitor prices of securities on the organized
exchanges.
22) Because of their tax-exempt status, municipal bonds offer higher nominal returns
than taxable alternatives.