True or False?

1. A 401(K) plan is a good substitute for a life insurance policy.

2. If you contribute to a 401(K) defined contribution plan your wealth grows at the six month U.S. Treasury bill (t-bill) rate.

3.

Which investment returns a greater future value at time 10; A or B

INVESTMENT A

time	return	investment
0		$1,000.00
1	3%
2	3%
3	3%
4	3%
5	3%
6	3%
7	3%
8	3%
9	3%
10	3%

INVESTMENT B

time	return	investment
0		$1,000.00
1	1%
2	3%
3	4%
4	3%
5	-2%
6	4%
7	-2%
8	-1%
9	-5%
10	6%

4. All annuity contracts have a feature that protects the annuitant from inflation.