FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 25: Extension: Managing Personal Finances

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is an indication that the government has recognized that problems with Social Security funding make it highly unlikely that future Social Security benefits will be sufficient to provide retirees with enough income for a comfortable retirement?

A) The government has provided cost-of-living adjustments to Social Security recipients.
B) The government has invested the contributions in high-yielding investment securities.
C) The government has established incentives for workers to save their own money for retirement.
D) The government has passed legislation to require Social Security to maintain a balanced budget.

E) A) and B)
F) All of the above

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

MyIRA is a Roth IRA-type retirement savings plan for low and middle-income individuals.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

________ life insurance offers pure insurance protection for a given period of time.

During her sophomore year in college Melody received a letter indicating she was eligible for a credit card along with a free gift from Metro State Bank. Melody was really excited until she remembered that any cash she has usually "burns a hole" in her pocket. Melody would likely not be successful with a credit card because:

Multiyear level-premium insurance is a form of term insurance with fixed premiums for the life of the policy.

Though stock prices do sometimes go down, investing in the stock market has generally provided very attractive returns over the long run.

Managing the finances of a household is similar to managing the finances of a small business.

Tracking business and personal spending by categories is an important technique to control expenditures.

A benefit of using credit cards is that they:

As a recent college graduate just starting out on his own, Greg needs health, disability, car, and auto insurance. He may be able to save money by obtaining an umbrella policy.

Social Security is the term used to describe the Old Age, Survivors, and Disability Insurance Program.

Petulia has been following the stock market, and has noticed that it has generally been declining for the last several weeks. Many of her friends have sold stock, but Petulia looks at this situation as a good opportunity to buy. Petulia's views are consistent with the ___________ approach to investing in the stock market.

Which of the following is a benefit unique to buying a duplex, as opposed to the purchase of a single-family home?

Many small-business owners invest in 401(k) plans for their retirement.

A major source of revenue on your personal income statement is your salary or wages from your job.

If you have minor children, the first step in estate planning is to select their guardian.

Hernando and Margarita have decided to take out an umbrella policy from an insurance company. The main reason they would probably want to do this would be to:

One strategy to lower the cost of automobile insurance is to purchase a policy with a:

Both the Roth and traditional IRA allow individuals to put as much money as they want into their retirement account.

Ricardo desires to reduce his current taxable income and save for retirement. He should consider a traditional IRA.