FIN 370 Exam 2 Questions and Answers
Graded A+
financial planning - Correct answer-allocation of monetary resources
purpose of financial planning - Correct answer-to ensure money exists when
needed
4 step process - Correct answer-assessment, indemnification, allocation, routine
whole life insurance - Correct answer-good for mid-term and long-term savings
stock company - Correct answer-pays dividends to stockholders
mutual company - Correct answer-pays dividends to policyholders/contract holders
Certificate of Deposit (CD) - Correct answer-financial instrument that provides a
stated rate of interest to the Account Holder in exchange for agreeing the bank can
utilize the money for a set period of time (maturity period). gives a penalty if you
take out the money before the time expires
installment loan - Correct answer-loan repaid in equal payments over a specified
period of time
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
Graded A+
financial planning - Correct answer-allocation of monetary resources
purpose of financial planning - Correct answer-to ensure money exists when
needed
4 step process - Correct answer-assessment, indemnification, allocation, routine
whole life insurance - Correct answer-good for mid-term and long-term savings
stock company - Correct answer-pays dividends to stockholders
mutual company - Correct answer-pays dividends to policyholders/contract holders
Certificate of Deposit (CD) - Correct answer-financial instrument that provides a
stated rate of interest to the Account Holder in exchange for agreeing the bank can
utilize the money for a set period of time (maturity period). gives a penalty if you
take out the money before the time expires
installment loan - Correct answer-loan repaid in equal payments over a specified
period of time
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
