WGU 363 OA Practice Q Lesson 2 With Correct Answers
What cis cthe crisk cassociated cwith cowning conly cone cinvestment cof ca cparticular ctype, csuch cas cstock cin cone ccompany, cthat
cmay close cvalue cin cthe cfuture cas ccompared cto cthe cpurchase cprice cbecause cof cuncontrollable cfactors?
cTime chorizon crisk
cInflation crisk
cRandom crisk
cMarket crisk c- cCORRECT cANS✔✔investing cin cmore cthan cone cstock cis csuggested, cas cthe codds care clessened cthat call cof
ctheir cprices cwill cfall cat cthe csame ctime.
Which crisk cresults cfrom cchanges cin cthe cincome ctax cor clegal cenvironments cimposed cby ca cgovernment?
cBusiness cfailure crisk
cLiquidity crisk
cGlobal cinvestment crisk
cRegulatory crisk c- cCORRECT cANS✔✔As ca cgovernment's cincome ctax cor clegal cenvironments cchange, cprofits cfor csome
ccompanies cmay cdecrease cor crise csignificantly.
What cis cthe cpractice cof cselecting ca ccollection cof cdifferent casset cclasses cof cinvestments cthat care cchosen cnot conly cfor ctheir
cpotential creturns cbut calso cbecause ctheir crisk-return ccharacteristics care cnot clike cone canother?
cDollar-cost caveraging
cPortfolio cdiversification
cRebalancing
cBuy-and-hold c- cCORRECT cANS✔✔Experts crecommend cchoosing ca cvariety cof cinvestments, csuch cas cstocks, cbonds, cmutual
cfunds, creal cestate, cand ccash.
Which ctype cof crisk cis cthe cpossibility cthat can cinvestment cwill cfail cor cgo cbankrupt cand cresult cin ca cmassive closs cof cone's
cinvested cfunds?
cLiquidity crisk c
Business cfailure crisk c
Market-volatility crisk c
Inflation crisk c- cCORRECT cANS✔✔Business cfailure crisk cis cthe cpossibility cthat can cinvestment cwill cfail cto cpay ca creturn cto cthe
cinvestor.
What cis cthe cterm cfor ca ccontraction cin cthe ceconomy cthat cinfluences cthe cmarket cand cinvestments?
cRecession
cFinancial crisk
cLiquidity
cDeflation c- cCORRECT cANS✔✔During ca crecession, cthe cmarket cusually cdeclines cand cprofits care caffected.
What cis ca csecurities cmarket cin cwhich cprices chave cdeclined cin cvalue cby c20% cor cmore cfrom cprevious chighs cover cthe ccourse
cof cseveral cweeks cor cmonths?
cMarket cvolatility
cBull cmarket
cBear cmarket
cMarket ccorrection c- cCORRECT cANS✔✔Bear cmarkets cdrive cvaluations cdown cto cvery clow clevels, cbut cthat coften cleads cto
cbigger cgains cin cthe cmarket.
Which cinvestment cstrategy crequires can cinvestor cto cbuy cmore cshares cto creduce cthe cinvestor's caverage ccost cin chopes cthat
cthe cstock cwill cperform cwell?
cMarket cefficiency
cDoubling cdown
cLoss caversion
cHold cand chope c- cCORRECT cANS✔✔Doubling cdown, cor caveraging cdown, cis cthe cstrategy cof cbuying cmore cshares cat ccurrent
clower ccosts cin chopes cthat cthe cstock cwill cperform cwell cin cthe cfuture.
Which cof cthe cfollowing cis can casset callocation crule?
, cThe c110 crule
cThe crisk ctolerance crule
cDollar-cost caveraging crule
cThe crebalance crule c- cCORRECT cANS✔✔To ccalculate cthe cpercent cto cinvest cin cequities, ctake c110 cand csubtract cthe
cinvestor's cage; cthen cmultiply cby c1.25.
Oliver cwants cto cbe csure cthat chis cassets care cdistributed cin csuch ca cway cthat cthey cgo cto chis cdesired cheirs. cHe cwants cto
cavoid cunnecessary cprobate ccourt ccosts cand cprocedures cfor chis cheirs.
What cdoes cOliver cneed cto chave cin cplace cto censure chis cwishes care cimplemented?
cEstate cplan c
Probate cplan c
Codicil cplan c
Survivorship cplan c- cCORRECT cANS✔✔An cestate cplan cis cused cfor cthe cdistribution cof can cestate cand cincludes cassets cand cto
cwhom cthey cshould cbe ctransferred.
Fatima chas cnamed cher cdaughter cher cbeneficiary cfor cher cretirement cand clife cinsurance caccounts.
What care cFatima's cretirement cand clife cinsurance caccounts cconsidered cto cbe cin cthis csituation? c
Codicil cproperty
Probate cproperty c
Contingent cproperty c
Nonprobate cproperty c- cCORRECT cANS✔✔Assets cthat care ctransferred cto can cheir cby cnaming cthat cperson cthe cbeneficiary care
cconsidered cnonprobate cproperty.
Sara cwants cto cbe csure cthat cher clife cinsurance cpolicy cgets cpaid cout cto cher chusband cupon cher cdeath cwithout cgoing cthrough
cprobate.
What cdoes cSara cneed cto cname cher chusband cto censure cthis chappens? c
Contingency c
Beneficiary
cProbate c
Testator c- cCORRECT cANS✔✔A cbeneficiary cis ca cperson cor corganization cdesignated cto creceive ca cbenefit cfrom cone's cestate.
Contingent cBeneficiary c- cCORRECT cANS✔✔An calternate cbeneficiary cdesignated cto creceive cthe cpolicy cproceeds cin cthe
cevent cthat cthe cprimary cbeneficiary cdies cbefore cthe cinsured.
Ahmed cand cAnika cshare ca cbank caccount. cThey cown ctheir chome ctogether.
Which ctransfer cby ccontract cwould callow cone cspouse cto cassume cfull cownership cof cthe cassets cupon cthe cdeath cof cthe cother
cspouse cwithout cgoing cthrough cprobate?
Joint ctenancy cwith cright cof csurvivorship
A cwill
Payable-on-death cdesignation
Beneficiary c- cCORRECT cANS✔✔This ccontract cwill cimmediately ctransfer can casset cto ca cperson cupon can cowner's cdeath.
cUpon cthe cdeath cof cone cowner, cthe csurviving cowner creceives cthe cproperty cby coperation cof claw.
What cis cthe cterm cused cfor cthe ccourt-supervised cprocess cthat callows ccreditors cto cpresent cclaims cagainst can cestate cand
censures cthe ctransfer cof cassets cto cthe crightful crecipient cupon cone's cdeath?
cWill
cCodicil
cIntestate
cProbate c- cCORRECT cANS✔✔A cspecial cprobate ccourt callows ccreditors cto cpresent cclaims cagainst can cestate cand coversees
cthe ctransfer cof ca cdecedent's cassets cto cthe crightful cbeneficiaries.
Talia cis cthe csole cowner cof cher chome. cIn cher cwill, cTalia clists cthat cshe cwill cleave cher chouse cto cher cdaughter.
Which ctype cof cproperty cis cTalia's chouse? c
Nonprobate
cJoint ctenancy
cProbate
cPayable-on-death c- cCORRECT cANS✔✔A chouse cin cTalia's cname cthat cwas cleft cto cher cdaughter cin cher cwill cwould cbe
csubject cto cthe cprobate cprocess.
Li chas ca cbank caccount cthat che cwants cto cleave cto chis cnephew cupon chis cdeath. cLi cdoes cnot cwant chis cnephew cto cbe cable cto
caccess cthe cfunds cnow. cHe cwants chim cto cbe cable cto caccess cthe cfunds conly cafter chis cdeath.
Which ctype cof ctransfer cby ccontract cshould cLi cget cto censure cthis chappens cwithout cthe caccount cgoing cthrough cprobate?
cGift c
Joint ctenancy
cPayable-on-death c
Will c- cCORRECT cANS✔✔The cperson cnamed cthe cpayable-on-death cdesignee cis cnot centitled cto cany cof cthe cmoney cin cthe
caccount cwhile cthe caccount cholder cis cstill calive.
How cdoes cmedical cinsurance cprotect ca cperson's cassets cand cincome?
cMedical cinsurance chas can cout-of-pocket cmaximum ca cperson cpays ceach cyear, cwhich cis cset cby cthe cinsurance cprovider. c
What cis cthe crisk cassociated cwith cowning conly cone cinvestment cof ca cparticular ctype, csuch cas cstock cin cone ccompany, cthat
cmay close cvalue cin cthe cfuture cas ccompared cto cthe cpurchase cprice cbecause cof cuncontrollable cfactors?
cTime chorizon crisk
cInflation crisk
cRandom crisk
cMarket crisk c- cCORRECT cANS✔✔investing cin cmore cthan cone cstock cis csuggested, cas cthe codds care clessened cthat call cof
ctheir cprices cwill cfall cat cthe csame ctime.
Which crisk cresults cfrom cchanges cin cthe cincome ctax cor clegal cenvironments cimposed cby ca cgovernment?
cBusiness cfailure crisk
cLiquidity crisk
cGlobal cinvestment crisk
cRegulatory crisk c- cCORRECT cANS✔✔As ca cgovernment's cincome ctax cor clegal cenvironments cchange, cprofits cfor csome
ccompanies cmay cdecrease cor crise csignificantly.
What cis cthe cpractice cof cselecting ca ccollection cof cdifferent casset cclasses cof cinvestments cthat care cchosen cnot conly cfor ctheir
cpotential creturns cbut calso cbecause ctheir crisk-return ccharacteristics care cnot clike cone canother?
cDollar-cost caveraging
cPortfolio cdiversification
cRebalancing
cBuy-and-hold c- cCORRECT cANS✔✔Experts crecommend cchoosing ca cvariety cof cinvestments, csuch cas cstocks, cbonds, cmutual
cfunds, creal cestate, cand ccash.
Which ctype cof crisk cis cthe cpossibility cthat can cinvestment cwill cfail cor cgo cbankrupt cand cresult cin ca cmassive closs cof cone's
cinvested cfunds?
cLiquidity crisk c
Business cfailure crisk c
Market-volatility crisk c
Inflation crisk c- cCORRECT cANS✔✔Business cfailure crisk cis cthe cpossibility cthat can cinvestment cwill cfail cto cpay ca creturn cto cthe
cinvestor.
What cis cthe cterm cfor ca ccontraction cin cthe ceconomy cthat cinfluences cthe cmarket cand cinvestments?
cRecession
cFinancial crisk
cLiquidity
cDeflation c- cCORRECT cANS✔✔During ca crecession, cthe cmarket cusually cdeclines cand cprofits care caffected.
What cis ca csecurities cmarket cin cwhich cprices chave cdeclined cin cvalue cby c20% cor cmore cfrom cprevious chighs cover cthe ccourse
cof cseveral cweeks cor cmonths?
cMarket cvolatility
cBull cmarket
cBear cmarket
cMarket ccorrection c- cCORRECT cANS✔✔Bear cmarkets cdrive cvaluations cdown cto cvery clow clevels, cbut cthat coften cleads cto
cbigger cgains cin cthe cmarket.
Which cinvestment cstrategy crequires can cinvestor cto cbuy cmore cshares cto creduce cthe cinvestor's caverage ccost cin chopes cthat
cthe cstock cwill cperform cwell?
cMarket cefficiency
cDoubling cdown
cLoss caversion
cHold cand chope c- cCORRECT cANS✔✔Doubling cdown, cor caveraging cdown, cis cthe cstrategy cof cbuying cmore cshares cat ccurrent
clower ccosts cin chopes cthat cthe cstock cwill cperform cwell cin cthe cfuture.
Which cof cthe cfollowing cis can casset callocation crule?
, cThe c110 crule
cThe crisk ctolerance crule
cDollar-cost caveraging crule
cThe crebalance crule c- cCORRECT cANS✔✔To ccalculate cthe cpercent cto cinvest cin cequities, ctake c110 cand csubtract cthe
cinvestor's cage; cthen cmultiply cby c1.25.
Oliver cwants cto cbe csure cthat chis cassets care cdistributed cin csuch ca cway cthat cthey cgo cto chis cdesired cheirs. cHe cwants cto
cavoid cunnecessary cprobate ccourt ccosts cand cprocedures cfor chis cheirs.
What cdoes cOliver cneed cto chave cin cplace cto censure chis cwishes care cimplemented?
cEstate cplan c
Probate cplan c
Codicil cplan c
Survivorship cplan c- cCORRECT cANS✔✔An cestate cplan cis cused cfor cthe cdistribution cof can cestate cand cincludes cassets cand cto
cwhom cthey cshould cbe ctransferred.
Fatima chas cnamed cher cdaughter cher cbeneficiary cfor cher cretirement cand clife cinsurance caccounts.
What care cFatima's cretirement cand clife cinsurance caccounts cconsidered cto cbe cin cthis csituation? c
Codicil cproperty
Probate cproperty c
Contingent cproperty c
Nonprobate cproperty c- cCORRECT cANS✔✔Assets cthat care ctransferred cto can cheir cby cnaming cthat cperson cthe cbeneficiary care
cconsidered cnonprobate cproperty.
Sara cwants cto cbe csure cthat cher clife cinsurance cpolicy cgets cpaid cout cto cher chusband cupon cher cdeath cwithout cgoing cthrough
cprobate.
What cdoes cSara cneed cto cname cher chusband cto censure cthis chappens? c
Contingency c
Beneficiary
cProbate c
Testator c- cCORRECT cANS✔✔A cbeneficiary cis ca cperson cor corganization cdesignated cto creceive ca cbenefit cfrom cone's cestate.
Contingent cBeneficiary c- cCORRECT cANS✔✔An calternate cbeneficiary cdesignated cto creceive cthe cpolicy cproceeds cin cthe
cevent cthat cthe cprimary cbeneficiary cdies cbefore cthe cinsured.
Ahmed cand cAnika cshare ca cbank caccount. cThey cown ctheir chome ctogether.
Which ctransfer cby ccontract cwould callow cone cspouse cto cassume cfull cownership cof cthe cassets cupon cthe cdeath cof cthe cother
cspouse cwithout cgoing cthrough cprobate?
Joint ctenancy cwith cright cof csurvivorship
A cwill
Payable-on-death cdesignation
Beneficiary c- cCORRECT cANS✔✔This ccontract cwill cimmediately ctransfer can casset cto ca cperson cupon can cowner's cdeath.
cUpon cthe cdeath cof cone cowner, cthe csurviving cowner creceives cthe cproperty cby coperation cof claw.
What cis cthe cterm cused cfor cthe ccourt-supervised cprocess cthat callows ccreditors cto cpresent cclaims cagainst can cestate cand
censures cthe ctransfer cof cassets cto cthe crightful crecipient cupon cone's cdeath?
cWill
cCodicil
cIntestate
cProbate c- cCORRECT cANS✔✔A cspecial cprobate ccourt callows ccreditors cto cpresent cclaims cagainst can cestate cand coversees
cthe ctransfer cof ca cdecedent's cassets cto cthe crightful cbeneficiaries.
Talia cis cthe csole cowner cof cher chome. cIn cher cwill, cTalia clists cthat cshe cwill cleave cher chouse cto cher cdaughter.
Which ctype cof cproperty cis cTalia's chouse? c
Nonprobate
cJoint ctenancy
cProbate
cPayable-on-death c- cCORRECT cANS✔✔A chouse cin cTalia's cname cthat cwas cleft cto cher cdaughter cin cher cwill cwould cbe
csubject cto cthe cprobate cprocess.
Li chas ca cbank caccount cthat che cwants cto cleave cto chis cnephew cupon chis cdeath. cLi cdoes cnot cwant chis cnephew cto cbe cable cto
caccess cthe cfunds cnow. cHe cwants chim cto cbe cable cto caccess cthe cfunds conly cafter chis cdeath.
Which ctype cof ctransfer cby ccontract cshould cLi cget cto censure cthis chappens cwithout cthe caccount cgoing cthrough cprobate?
cGift c
Joint ctenancy
cPayable-on-death c
Will c- cCORRECT cANS✔✔The cperson cnamed cthe cpayable-on-death cdesignee cis cnot centitled cto cany cof cthe cmoney cin cthe
caccount cwhile cthe caccount cholder cis cstill calive.
How cdoes cmedical cinsurance cprotect ca cperson's cassets cand cincome?
cMedical cinsurance chas can cout-of-pocket cmaximum ca cperson cpays ceach cyear, cwhich cis cset cby cthe cinsurance cprovider. c
