Reference no: EM133306354
Question 1
Buying a new car is the major reason that people borrow money through consumer loans.
True
False
Question 2
A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt.
True
False
Question 3
Term life policies build a cash value during the period that the policy is in place.
True
False
Question 4
Whole life is the simplest type of insurance policy
True
False
Question 5
Universal life insurance is a permanent life insurance with an investment savings element and low premiums.
True
False
Question 6
About 13% of the country does not have health insurance.
True
False
Question 7
Medicaid provides health insurance for individuals over 65 or disabled, funded by the Medicare tax.
True
False
Question 8
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) an employer is not responsible for providing health care coverage for any employees who leave or are terminated.
True
False
Question 9
The Principle of Indemnity is an insurance principle stating that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss.
True
False
Question 10
In any property insurance policy, the deductible is the amount deducted from loss before payment is made.
True
False
Question 11
At maturity, a bond holder's investment is returned along with the final coupon payment.
True
False
Question 12
Capital markets are where low risk, short-term securities with maturities of less than one year are traded.
True
False
Question 13
The Ask Price is the price that a Buyer is willing to Buy shares from a Seller for.
True
False
Question 14
The Rate of Return on a security depends on the increase or decrease in the price of an investment as well as any income during period.
True
False
Question 15
The Capital Gains are the "realization of change in market value by selling a security."
True
False
Question 16
The Required Rate of Return is the minimum rate of return an investor feels should be earned in compensation for the amount of risk assumed.
True
False
Question 17
Shareholders have priority in receiving compensation in the event that a company is required to settle outstanding obligations.
True
False
Question 18
The Book Value of a firm is essentially its Shareholder's Equity.
True
False
Question 19
The Capitalization of a company is the Shares Outstanding multiplied by the current Stock Price.
True
False
Question 20
Bond prices are inversely related to interest rate movements.
True
False