Question 1 If a bond is purchased at a price below the face value, the yield to maturity is: greater than the stated interest rate. the same as the stated interest rate. less than the stated interest rate. zero. of no significance. Question 2 A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called: dollar cost averaging. dividend reinvestment plan. buy and hold technique. regulated transaction. secured transaction. Question 3 A stock that sells for less than $1 per share is called a: fractional stock. penny stock. dollar stock. ten-dollar stock. bad investment. Question 4 Which one of the following expenditures for retirees is likely to decrease? clothing expenses insurance expenses medical expenses expenses for leisure activities gifts and contributions Question 5 During your retirement, your employer’s health insurance plan and Medicare will cover your medical expenses. false true Question 6 What is likely to be an individual’s single biggest asset? Their automobile Their jewelry Their bank account Their home None of the choices Question 7 With an open-end credit, you pay back one-time loans in a specified period of time in equal amounts. false true Question 8 Which of the following is most likely not a valid reason for using credit? Borrowing for a stay in a hospital because of appendicitis Borrowing to purchase a car so that you can go to work full time Borrowing to buy a printer for your home office now because you now it will be twice as expensive in two years Borrowing to pay for your expensive dinner and movie every week All of the choices are valid reasons for using credit Question 9 Gordon Carey uses his Visa card to purchase a new digital camera and lens. What type of credit did Gordon use? Installment sales credit Installment cash credit Single lump sum credit Revolving credit Incidental credit Question 10 For most mutual funds, the net asset value is calculated: yearly. quarterly. weekly. daily. whenever an investor calls and requests a price quote. Question 11 Which of the following is an advantage of an exchange traded fund (EFT)? No minimum investment amount Shares can be bought and sold through a broker at any time at the current price Management fees are often lower Can use limit orders to purchase EFTs All of the choices are advantages of EFTs Question 12 For a mutual fund, the turnover ratio measures: the length of time a manager has been in charge of the fund. the amount of profit the fund earns from one investment period to the next. the number of months the average investor holds the fund before selling. the percentage of a fund’s holdings that have changed during a 12-month period. the percentage of institutional investors who own the fund. Question 13 Grady Perdue has assets worth $1,500,000 and has written a legal document that specifies that all of his money go to his children. After he dies, there is a legal process to determine whether his document specifying how his assets be divided is valid. This is also the legal process by which his executor manages and distributes his property. What is this legal process called? An estate A will A trust Probate None of the choices Question 14 A trust established by your will that becomes effective upon your death is called a(n) ____________ trust. testamentary living revocable irrevocable insurance Question 15 A legal document authorizing someone to act on your behalf is called a: codicil. rider. power of attorney. trustor. proxy. Question 16 A prime reason for buying an annuity is to: save money for college education start a new business accumulate funds to invest in stocks give you retirement income for the rest of your life get rich quick Question 17 Who has the greatest need for life insurance? households with small children singles living alone singles living with parents dual income couple children Question 18 Jerry Lewis is thinking about purchasing some life insura…

Looking for solution of this Assignment?


We deliver quality original papers

Our experts write quality original papers using academic databases.  

Free revisions

We offer our clients multiple free revisions just to ensure you get what you want.

Discounted prices

All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount

100% originality

We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity

On-time delivery

We will deliver your paper on time even on short notice or  short deadline, overnight essay or even an urgent essay