| 1. |
Which of the following statements best describes asset allocation?
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A method of assigning your financial contributions to different risk classes of investments
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The process of dividing an estate among your heirs
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A method of assigning your investments to different advisors
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Don't know |
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| 2. |
Which type of investment has historically provided the best protection against inflation over the long term?
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Bonds
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Cash Reserves
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Stocks
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Don't know |
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| 3. |
What do index funds do?
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Limit themselves to the stocks in the Standard & Poor's 500 stock index
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Try to beat the investment return of a specified stock or bond benchmark
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Match the investment returns of a specified stock or bond benchmark
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Don't know |
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| 4. |
When interest rates decline, the price of a bond or bond fund generally...
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Increases
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Decreases
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Don't know |
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| 5. |
What is the best way to minimize losses in your investments when the stock market declines?
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Don't buy stocks in the first place
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Always maintain a diversified portfolio for just such occurrences
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Be the first to sell everything at the slightest hint of a downturn in the market
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Don't know |
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| 6. |
Which of the following statements is the most true about disability income insurance?
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It can cover part of your lost income while you are disabled
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It pays medical expenses associated with a disability
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It should be purchased only by star athletes
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It is primarily for the unemployed
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Don't know |
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| 7. |
Mark all the benefits of whole life insurance policies: (Mark all that apply)
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You can change who the policy insures whenever you want
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The policy can earn dividends which raises its cash value
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The policy will last as long as you live if you pay its premiums
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You can withdraw money from the policy's cash value and use the money for any reason
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The cash value the policy earns is tax-free as you earn it
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None of the above
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Don't know |
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| 8. |
If you leave your employer, you are still covered by the group life insurance offered through that employer.
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True
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False
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Don't know |
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| 9. |
If you leave your employer, you can keep the group disability income insurance coverage offered through that employer.
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True
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False
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Don't know |
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| 10. |
Which of the following statements is true of an immediate annuity?
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You can add to your account
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The account is guaranteed by the government
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The income from the account accrues tax-free
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Your income from the account is guaranteed for as long as you live
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Don't know |
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| 11. |
Fixed annuities are generally considered safe because...
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Your money is invested in high quality mutual funds
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The insurance company doesn't actually invest your money
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Insurance companies never go out of business
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The insurance company invests conservatively and sets aside reserves of capital to make sure your investment is safe
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Don't know |
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| 12. |
Which of the following statements about long-term care insurance is true?
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It should be bought only after age 65
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It can help protect assets from the cost of assisted living
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It is not necessary since Medicare always covers long-term care expenses
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It is always available regardless of your past health history
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Don't know |
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| 13. |
People invest in 529 plans to help fund which of the following?
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Retirement
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Medical Care
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Education
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Don't know |
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| 14. |
Which of the following represents the cost of a year-long stay in a nursing home in your state?
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Under $25,000
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$25,000 to $49,999
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$50,000 to $99,999
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$100,000 or more
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Don't know |