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190. Joseph and Mack are good friends who have similar jobs that pay them well. Both have
established budgets that allow them to invest several hundred dollars each month. Mack has a
strategy of putting most of his money in bank CDs and a savings account. Joseph has opted for a
strategy of investing in the stock market. According to the evidence of the past 50 years, it is
likely that over the long run:
191. Petulia has been following the stock market, and has noticed that it has generally been
declining for the last several weeks. Many of her friends have sold stock, but Petulia looks at this
situation as a good opportunity to buy. Petulia's views are consistent with the ___________
approach to investing in the stock market.
192. Hannah is excited about getting her first credit card. However, she should be aware of
the fact that:
193. Leonardo is in the habit of using his credit card for expenditures made on business trips.
The most likely reason he does this is to:
194. Which of the following is the best advice about the use of credit cards?
195. ________ life insurance offers pure insurance protection for a given period of time.
196. One disadvantage of term life insurance is that:
197. Which of the following is a new form of term insurance that guarantees fixed premiums
for the life of the policy?
198. According to
Newsweek
magazine, a young couple with a new baby should have life
insurance coverage equal to:
199. _________ is a form of life insurance that provides both a savings plan and pure insurance
coverage.
200. Which of the following is a form of whole life insurance that provides a death benefit that
varies with the performance of the investments of the insurance company?
201. A contract that calls for regular payments to an individual for life or for a fixed period of
time is called a(n):
202. Your chances of becoming disabled at an early age are ________ than your chance of
dying from an accident.
203. Purchasing ________ insurance is a relatively low cost way of protecting yourself from lost
income due to an accident or prolonged illness.
204. ________ insurance provides protection from the cost of medical care for illnesses and
injuries.
205. ________ insurance provides protection from losses of furniture, appliances, and clothes.
206. A homeowner's insurance policy that includes a provision for __________ would provide
the homeowner with enough cash to replace the items lost.
207. One strategy to lower the cost of automobile insurance is to purchase a policy with a:
208. A(n) ________ can be added to a homeowner's insurance policy that provides for coverage
at a reasonable cost for items that the policy otherwise would not cover.
209. Many insurance providers offer __________ policies that give a discount to families who
buy several types of insurance coverage from them.
210. A comparison of variable life insurance to a standard whole life plan would reveal that:
211. A common purpose of a rider added to a homeowner's policy is to:
212. Which of the following deductible levels would result in the lowest premium for
automobile insurance?
213. Stan and Heidi are married and both have careers in business. If one of the two were to
die, there would be a sudden drop in income. To provide protection from this risk the couple
should purchase:
214. Hernando and Margarita have decided to take out an umbrella policy from an insurance
company. The main reason they would probably want to do this would be to:
215. Although he has a good health insurance policy, Ken is concerned that a serious accident
or lengthy illness would still be devastating to his family because of the lost income and other
expenses not covered by his policy. Ken would probably be interested in obtaining:
216. Annette and Ron just got married. They received some very expensive wedding gifts
including some beautiful silverware and jewelry. Their homeowner's policy:
217. The Social Security program was established in:
218. The number of workers paying into Social Security for each retiree receiving Social
Security benefits is:
219. In the future, the Social Security system is likely to:
220. Trends in the number of workers contributing to the Social Security system and the
number of workers drawing benefits from the system suggest that future generations will:
221. The tax-deferred investment plan that allows employees to save part of their income for
retirement is called a(n):
222. The earnings on a traditional IRA are:
223. A Roth IRA offers employees an incentive to save for their retirement by:
224. Investments in IRA accounts:
225. One benefit of a simple IRA is that it allows:
