QUESTION 1

What do we call a long term loan secured by real estate?

A.An amortized loan

B.A mortgage

C.A discount loan

D.A pension

2 points

QUESTION 2

You as an individual can establish your own retirement account and obtain preferential tax treatment.

True

False

2 points

QUESTION 3

What agency insures pension benefits if an underfunded pension plan is unable to meet its obligations?

A.ERISA

B.SEC

C.Social Security

D.PBGC

2 points

QUESTION 4

What do we call an asset pool that accumulates over an individual's working years and is paid out during the nonworking years?

A.A mutual fund

B.A pension plan

C.term life insurance

D.reinsurance

2 points

QUESTION 5

Tell me 3 entities that you believe were at least partially responsible for the bursting of the housing bubble that led to the great recession of 20087-2009.Explain each entity's role and how it contributed to the problem

6 points

QUESTION 6

What do we callmutual funds that have commonalities and include several families of funds?

A.Family funds

B.Complexes

C.Open end funds

D.Closed end funds

2 points

QUESTION 7

Which of the following tools might an insurance company use to deal with moral hazard issues?

A.Screening

B.Fraud prevention

C.Deductibles

D.all of the above

2 points

QUESTION 8

Which of the following is true about mortgages?

A.The loan has a monthly payment that includes both interest and principal.

B.Mortgage loans are created as simple loans.

C.The loan is paid monthly and all monthly payments go towards interest until the middle year of the loan, then the principal is paid.

D.Mortgages require monthly interest payments and annual principal payments.

E.All of the above are true

2 pointsQUESTION 9

A Defined-Benefit Pension Plan is a plan where the sponsor promises the employee a specific benefit when they retire.

True

False

2 points

QUESTION 10

The affordable healthcare act (Obamacare) provides free medical coverage to ALL Americans.

True

False

2 points

QUESTION 11

Which type of property insurance protects against any losses except from perils specifically named in the policy?

A.Open peril policies

B.Named peril policies

C.Casualty insurance

D.Reinsurance

2 points

QUESTION 12

Which of the following is a way to keep Social Security from running out of funds?

A.Lower the retirement age

B.Pay more to the wealthy

C.Increase the retirement age

D.all of the above could help

2 points

QUESTION 13

Those least likely to suffer a loss are the ones who apply for insurance.

True

False

2 points

QUESTION 14

What do we call an investment offered by life insurance companies that pays a benefit to the insured until death to cover their retirement years?

A.Whole life

B.Universal life

C.Reinsurance

D.Annuity

2 points

QUESTION 15

Most insurance is regulated at the State level.

True

False