Reference no: EM132770431

Problem 1: The best approach to solve the problem of an annual budget deficit is to:

a. liquidate more assets than required to meet the budget shortfall for the year.

b. borrow funds on credit cards.

c. reduce flexible expenditures on nonessential items.

d. reduce fixed expenses.

e. reduce high-priority expenses on the budget.

Problem 2: Universal life insurance is:

a. a deferred premium payment policy.

b. primarily sold to college students.

c. a combined savings/investment plan and insurance policy.

d. a provision for a secondary beneficiary.

e. less expensive than other policy types.