CYAF 222 - Final Exam Study Guide
questions with complete solutions
The Final Exam consists of Chapters 10, 11, 12, 13, 14, 15 and 17.
Skip Chapter 16.
True OR False - correct answer ✔✔Check Syllabi - Pending semester: True
Life insurance should be bought primarily:
as a gift.
as an investment.
to provide protection from financial losses.
as a tax shelter. - correct answer ✔✔to provide protection from financial losses.
The major financial loss resulting from premature death is the:
necessary final expenses.
debt-repayment expenses.
readjustment-period expenses.
lost income of the deceased. - correct answer ✔✔lost income of the deceased.
One's need for life insurance is generally the greatest during which phase of the life cycle?
Young married with children
Older married during retirement
Single
Young married - correct answer ✔✔Young married with children
,____ provide the basic descriptive information about the insured person or property, the
premium to be paid, the time period of the coverage, and the policy limits.
Declarations
Conditions
Insuring agreements
Endorsements - correct answer ✔✔Declarations
Selling shares of stock for more than you originally paid is called
leverage.
capital gain.
current income.
modern portfolio theory. - correct answer ✔✔capital gain.
Securities are made up of
(All of these)
mutual funds.
stocks.
bonds. - correct answer ✔✔(All of these)
If you have a(n) ____ investment philosophy, you accept very little risk and are generally
rewarded with relatively low rates of return.
moderate
aggressive
ultraconservative
conservative - correct answer ✔✔conservative
, An investor who reduces random risk by investing in a variety of types of investments is using
the buy-and-hold approach.
rules and charts.
portfolio diversification.
dollar-cost averaging. - correct answer ✔✔portfolio diversification.
Your first task in selecting a mutual fund is to
locate sources of comparative performance data.
review your investment philosophy.
screen and compare funds that meet your investment criteria.
eliminate funds inappropriate for your investment goals. - correct answer ✔✔review your
investment philosophy.
Compounding is attained in mutual fund investing through
using leverage.
frequent buying and selling of shares.
automatic reinvestment of dividends.
minimizing account fees. - correct answer ✔✔automatic reinvestment of dividends.
A mutual fund that invests in a mix of assets (usually stocks, bonds, and cash equivalents and
sometimes international assets, gold, and real estate), and they buy and sell regularly to reduce
risk while trying to outperform the market is a(n)
blend fund.
balanced fund.
asset allocation fund.
equity-income fund. - correct answer ✔✔asset allocation fund.
questions with complete solutions
The Final Exam consists of Chapters 10, 11, 12, 13, 14, 15 and 17.
Skip Chapter 16.
True OR False - correct answer ✔✔Check Syllabi - Pending semester: True
Life insurance should be bought primarily:
as a gift.
as an investment.
to provide protection from financial losses.
as a tax shelter. - correct answer ✔✔to provide protection from financial losses.
The major financial loss resulting from premature death is the:
necessary final expenses.
debt-repayment expenses.
readjustment-period expenses.
lost income of the deceased. - correct answer ✔✔lost income of the deceased.
One's need for life insurance is generally the greatest during which phase of the life cycle?
Young married with children
Older married during retirement
Single
Young married - correct answer ✔✔Young married with children
,____ provide the basic descriptive information about the insured person or property, the
premium to be paid, the time period of the coverage, and the policy limits.
Declarations
Conditions
Insuring agreements
Endorsements - correct answer ✔✔Declarations
Selling shares of stock for more than you originally paid is called
leverage.
capital gain.
current income.
modern portfolio theory. - correct answer ✔✔capital gain.
Securities are made up of
(All of these)
mutual funds.
stocks.
bonds. - correct answer ✔✔(All of these)
If you have a(n) ____ investment philosophy, you accept very little risk and are generally
rewarded with relatively low rates of return.
moderate
aggressive
ultraconservative
conservative - correct answer ✔✔conservative
, An investor who reduces random risk by investing in a variety of types of investments is using
the buy-and-hold approach.
rules and charts.
portfolio diversification.
dollar-cost averaging. - correct answer ✔✔portfolio diversification.
Your first task in selecting a mutual fund is to
locate sources of comparative performance data.
review your investment philosophy.
screen and compare funds that meet your investment criteria.
eliminate funds inappropriate for your investment goals. - correct answer ✔✔review your
investment philosophy.
Compounding is attained in mutual fund investing through
using leverage.
frequent buying and selling of shares.
automatic reinvestment of dividends.
minimizing account fees. - correct answer ✔✔automatic reinvestment of dividends.
A mutual fund that invests in a mix of assets (usually stocks, bonds, and cash equivalents and
sometimes international assets, gold, and real estate), and they buy and sell regularly to reduce
risk while trying to outperform the market is a(n)
blend fund.
balanced fund.
asset allocation fund.
equity-income fund. - correct answer ✔✔asset allocation fund.
