Suppose that you have decided to buy lile insurance. Which method of determining

Question

Suppose that you have decided to buy lile insurance. Which method of determining your lie insurance needs calculates the annual loss of income stream B) Earnings multiple approach D) Needs approach A) Whole life approach C) Limited term approach What is the official name of this act? all Americans have health insurance coverage. Aearhd dillgently in 2010 to pass a health care bill designed to make sure that almost A) Patient Protection and Affordable Care Act B) American Insurance All Act C) Health Bill 2010 Act D) Cobra Act 9) You purchased 100 shares of Quantex at $150 per share for a total investment of $15,000. After own and how much is now your purchase the stock had a 3 for 1 split. How many shares do you your original investment now worth? A) 300 shares and $15,000 dollars C) 100 shares and $45,000 dollars B) 300 shares and $45,000 dollars D) 33.33 shares and $5000 dollars TRUE/FALSE. Mark 'A' if the statement is true and 'B' if the statement is false. 10) Investment advice is very difficult to find and expensive to purchase. 11) If you are too conservative with your investments, they may not keep up with inflation. 12) A Traditional IRA (not ROTH) is a MULTIPLE CHOICE A) tax deferred/ tax exempt B) tax exempt/ tax exempt account, a Traditional 401K is a C) tax exempt / account D) tax deferred / tax deferred tax deferred 13) You have just purchased 10 shares of a stock selling at $50 per share. Since that time, the company was found to be in violation of several environmental laws and has several major lawsuits outstanding. Which of the following statements is most correct? A) You could lose up to $500. B) You cannot lose your investment based on the actions of the company C) By owning stock in the company, you have also technically violated the law. D) You could lose more than your $500 investment. E) You could lose $50 maximum. 14) What are the differences between an ETF and a mutual fund? A) An ETF can be traded like a share of common stock. B) An ETF is more tax-efficient than most mutual funds. C) An ETF can be purchased on margin or sold short like a share of common stock. D) Only A and C are correct E) A, B &C; are correct

Explanation / Answer

7) Ans B) Earnings multiple approach

the above method requires calculation of annual loss of income stream

8) A) Patient protection and Affordable Care Act

9) Ans A) 300shares and $15000 investment

In split one rreceives 3 shares for ever share held, thus number of shares will increase to 100*3 = 300 shares

however due to such flie share price bill become 1/3 of original price, hence share price = 150/3 = 50$

Thus investment amount = 300*50 = 15000$

10)Fasle

Investment advice is very easy to get. Many times it is free

11 ) True

Beining too conservative will reduce the return, making income vunerable to the inflation

12) A traditional IRA is tax exempt B and traditional 401k is tax deffered

13) A) you could loose upto $ 500

Maximum amount one can loose is amount of investment

14) D) only A and C are correct

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