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

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
The 401k plans give employees a pre-tax or tax-deferred way to save for retirement.
A.   TRUE
B.   FALSE
C.     
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.   FALSE
B.   TRUE
Question #4
A starting point for your estimates of retirement expenses is
A.   how long you will need to support yourself in retirement.
B.   the effects of inflation on your costs.
C.   your current level of spending.
D.   the way you want to live when you retire.
E.   the rate at which your savings compound.
Question #5
Issuers of stock
A.   pay dividends whether or not there is a profit.
B.   expect investors to share in profits and losses.
C.   promise returns.
D.   must trade in a public stock exchange.
E.   also issue bonds.
Question #6
When you invest in stocks you
A.   sell equity for liquidity.
B.   pay dividends, buy a share of a corporation and sell equity for liquidity
C.   pay dividends.
D.   pay dividends and sell equity for liquidity
E.   buy a share of a corporation.
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.   risk shifts.
B.   trade-offs.
C.   speculative risks.
D.   risk avoidance.
E.   pure risks.
Question #9
Hazards covered by the homeowner's policy include all the following EXCEPT
A.   floods and earthquakes.
B.   smoke damage.
C.   explosions.
D.   riots.
E.   damage caused by aircraft or vehicles.

Need help with your exam preparation?

Existing Quiz Clients Login here