Fin 008 - Personal Finance and Investments » Winter 2021 » Quiz 4

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Question #1
The 401k plans give employees a pre-tax or tax-deferred way to save for retirement.
A.     
B.   TRUE
C.   FALSE
Question #2
Disability insurance insures your income against an accident or illness that impairs your earning ability.
A.   TRUE
B.   FALSE
Question #3
An advantage of mutual funds that they have built in diversification.
A.   TRUE
B.   FALSE
Question #4
A starting point for your estimates of retirement expenses is
A.   your current level of spending.
B.   the effects of inflation on your costs.
C.   the rate at which your savings compound.
D.   the way you want to live when you retire.
E.   how long you will need to support yourself in retirement.
Question #5
Issuers of stock
A.   expect investors to share in profits and losses.
B.   must trade in a public stock exchange.
C.   also issue bonds.
D.   pay dividends whether or not there is a profit.
E.   promise returns.
Question #6
When you invest in stocks you
A.   pay dividends, buy a share of a corporation and sell equity for liquidity
B.   sell equity for liquidity.
C.   pay dividends and sell equity for liquidity
D.   buy a share of a corporation.
E.   pay dividends.
Question #7
Your risk tolerance represents
A.   the amount of money you stand to lose.
B.   your return objective.
C.   your wealth or net worth.
D.   the amount of time separating you from your money.
E.   your ability or willingness to take chances.
Question #8
Uninsurable risks that offer a chance of loss or gain are called
A.   trade-offs.
B.   pure risks.
C.   risk shifts.
D.   speculative risks.
E.   risk avoidance.
Question #9
Hazards covered by the homeowner's policy include all the following EXCEPT
A.   damage caused by aircraft or vehicles.
B.   floods and earthquakes.
C.   explosions.
D.   riots.
E.   smoke damage.

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