Instructions: Fill in the correct answer on your scantron. Write your name on both the scantron and this exam, and turn in both the scantron and the written exam when you are done. Only exams with both the scantron and the written exam will be graded. The questions are all worth the same number of points, but will not all take the same amount of time. Allocate your time accordingly. Good luck! 1. Which of the following statements is not true? a. Employers are interested parties to retirement planning. b. Recent surveys indicate that most people are adequately saving for retirement. c. Employees are interested parties to retirement planning. d. Retirement planning related investments are a large portion of overall investments. 2. Which factors may affect an individual's retirement plan? 1. Work Life Expectancy 2. Retirement Life Expectancy 3. Savings Rate 4. Investment Returns 5. Inflation a. 1 and 2 b. 1,2 , and 3 c. 1,2,3, and 4 d. All of the listed factors. 3. Based on our class discussions, which of the responses to the following statements are most accurate: "It is always better to make conservative assumptions regarding retirement contributions, inflation rates, and investment returns." a. The statement is true. It is always better to have too much retirement savings as opposed to too little, and there is virtually no cost to saving too much. b. The statement is false. Conservative assumptions regarding inflation rates and investment returns will cause the individual saver to save too little for retirement. More liberal assumptions should be used instead. c. The statement is false. Saving too much for retirement does have a cost in lost consumption before retirement, and conservative assumptions may also cause some people to simply give up on saving anything for retirement because they can't save enough based on those assumptions. d. The statement is false. Political philosophies, whether conservative or liberal, are extremely important to individual retirement planning