Final Exam Personal Finance

Insurance, Mortgage loan, Saving

End:| 9/3/2011 10:26:55 AM|

Here is some additional information on items you missed:
Question: What is the term for a budget that starts with the absolute necessities and debt payments and then adds expenditures until there is no more cash?  Answer: zero-based budget 
Key Terms: Zero-based budget|
Question: What type of mortgage loan has a fixed rate, fixed term and fixed payment?  Answer: conventional mortgage. 
Key Terms: Conventional mortgages|
Question: Who is the principal for whom a real estate broker works?  Answer: the seller 
Key Terms: Real estate broker’s client|
Question: How do insurers determine appropriate premiums for policyholders?  Answer: by evaluating risk classifications 
Key Terms: Risk classifications|
Question: When do medical expenses qualify as a deduction?  Answer: When the total is greater than the designated percentage of your adjusted gross income.  Key Terms: Medical expense|
Question: Which of the following is not one of the suggested ways to find money to invest?  Answer: Use existing home equity 
Key Terms: Investing|
Question: Which of the following methods for estimating retirement income needs assumes retirement expenses will be some fixed proportion of your preretirement needs?  Answer: replacement ratio method 

Key Terms: replacement ratio method|
Question: Which retirement saving program has a benefit that will depend on your yearly contribution and the rate of return on invested assets?  Answer: defined contribution plan. 
Key Terms: Contribution plan|
Question: What type of annuity pays an equal annual amount until death?  Answer: single life annuity 
Key Terms: Life annuities|
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