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