Exam 22: Appendix B: Managing Risk

Romeo and Juliet are experiencing marriage difficulties regarding money.One technique to help them control and forecast their future financial situation,as well as allow them to achieve their financial goals,would be to prepare a(n):

You should never borrow to cover regular expenses,but it makes perfectly good sense to use credit to cover unexpected expenses such as car or home repairs.

The best strategy to follow in using credit cards is to pay only the minimum amount required each month.

Your computer and car should both be listed on the asset side of your personal balance sheet.

Pete wants life insurance to provide benefits for his family if he were to die.He also wants part of his premium to go into a savings plan that he will need if he lives to retirement age.His best strategy to achieve insurance and savings with one premium is term insurance.

Everything else constant,the higher the deductible on your car insurance policy,the higher the premium for your car insurance.

Regardless of potential changes,you can count on Social Security to provide you with a comfortable retirement.

Term life insurance is a combination insurance plan and savings plan.

With respect to personal financial planning,the first thing to do with any extra money you have is to start a savings plan.

The increase in the number of retirement plans approved by the federal government likely indicates that:

Joseph and Mack are good friends who have similar jobs that pay them well.Both have established budgets that allow them to invest several hundred dollars each month.Mack has a strategy of putting most of his money in bank CDs and a savings account.Joseph has opted for a strategy of investing in the stock market.According to the evidence of the past 50 years,it is likely that over the long-run:

Credit-card debt represents an asset on a consumer's balance sheet.

According to contrarians,the big decline in the stock market during the early 2000s was:

A simple IRA,which allows workers to contribute larger amounts than a regular IRA,is available to employees who work for firms with fewer than 100 employees.

Financial planners encourage individuals to begin contributing funds into an IRA as early as possible.The major benefit of early and regular contributions is that:

For workers who qualify,the earnings from income invested in a traditional IRA are:

Excessive debt is as much a problem of young consumers as it is of other age groups.

The biggest advantage of the Roth IRA is that:

Investing in a home is generally considered a:

On average,a person with a college education earns _________ over the course of his or her career.