NAF exam review questions & answers 2023/2024

NAF exam review questions & answers 2023/2024 Bond Market - ANSWER-A financial market where participants buy and sell debt securities, usually in the form of bonds. Bond (Municipal) - ANSWER-A bond issued by a state, U.S. territory, city, local government, or other agencies. Bond (Corporate) - ANSWER-A bond issued by a corporation. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after the issue date. Blue Chip Stock - ANSWER-The stock of an established & reliable company that has stable earnings, a high credit rating, and is typically less volatile than stocks in companies without blue chip status. Asset Allocation - ANSWER-An investment strategy that aims to balance risk & reward by distributing a portfolio's assets according to an individuals goals. Will - ANSWER-A document by which a person regulates the rights of others over his or her property or family after death. Trust - ANSWER-A legal arrangement in which one person holds title to your money or property, subject to an obligation to keep or use the property for the benefit of another. Term Life - ANSWER-A life insurance policy purchase to any last only a specified length of time. Probate - ANSWER-The legal process of settling the estate of a deceased person, resolving all claims & distributing the decedent's property.