FHCE FINAL EXAM 151 QUESTIONS
WITH COMPLETE SOLUTIONS!!
rates decrease
increases
, Should be done regularly, on an
agreed-upon basis
savings account, money market
account and treasury bill
External conditions could affect the
plan
Don't know?
2 of 151
Term
If individuals do not begin saving at an early age, then they must
save a greater amount of their gross earnings to compensate for the
missed years of contributions and compounding of investment
returns.
Give this one a try later!
i, ii, iii Increase
The time value of the call option is
true
$1.
Don't know?
3 of 151
Definition
U.S. Government Savings Bonds
Coverdell Education Savings Accounts
,Qualified Tuition Plans
Prepaid Tuition and College Savings Plans
Give this one a try later!
Types of government grants Types of retirement income plans
Types of tax exempt investments Types of tax deferred savings
Don't know?
4 of 151
Term
What is the difference between terms and permanent life insurance?
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permanent has a savings and
consumers curtail or reduce use
investment component and
unless their incomes are also rising
term doesn't
at a comparable pace
-term is pure, low premium
Quantitative (measurable data) and Once the child turns 18 they gain
Qualitative (data concerned with access to the account and can use
clients quality of life) the money on anything
Don't know?
, 5 of 151
Term
Mr Khan has bee offered a corporate bond with stock warrants
attached. which of the following would be advantages and/or
disadvantages of this offering?
i. the corporate bond will be issued with a higher interest rate
(advantage)
ii. the corporate bond will be issued with a lower interest rate
(disadvantage) iii. the warrants are detachable and can be sold
separately (advantage)
v. warrants can not be attached to bonds
Give this one a try later!
i, ii, iii credits
ii, iii retain risk
Don't know?
6 of 151
Definition
Should be done regularly, on an agreed-upon basis
External conditions could affect the plan
WITH COMPLETE SOLUTIONS!!
rates decrease
increases
, Should be done regularly, on an
agreed-upon basis
savings account, money market
account and treasury bill
External conditions could affect the
plan
Don't know?
2 of 151
Term
If individuals do not begin saving at an early age, then they must
save a greater amount of their gross earnings to compensate for the
missed years of contributions and compounding of investment
returns.
Give this one a try later!
i, ii, iii Increase
The time value of the call option is
true
$1.
Don't know?
3 of 151
Definition
U.S. Government Savings Bonds
Coverdell Education Savings Accounts
,Qualified Tuition Plans
Prepaid Tuition and College Savings Plans
Give this one a try later!
Types of government grants Types of retirement income plans
Types of tax exempt investments Types of tax deferred savings
Don't know?
4 of 151
Term
What is the difference between terms and permanent life insurance?
Give this one a try later!
permanent has a savings and
consumers curtail or reduce use
investment component and
unless their incomes are also rising
term doesn't
at a comparable pace
-term is pure, low premium
Quantitative (measurable data) and Once the child turns 18 they gain
Qualitative (data concerned with access to the account and can use
clients quality of life) the money on anything
Don't know?
, 5 of 151
Term
Mr Khan has bee offered a corporate bond with stock warrants
attached. which of the following would be advantages and/or
disadvantages of this offering?
i. the corporate bond will be issued with a higher interest rate
(advantage)
ii. the corporate bond will be issued with a lower interest rate
(disadvantage) iii. the warrants are detachable and can be sold
separately (advantage)
v. warrants can not be attached to bonds
Give this one a try later!
i, ii, iii credits
ii, iii retain risk
Don't know?
6 of 151
Definition
Should be done regularly, on an agreed-upon basis
External conditions could affect the plan
