Exam 22: Appendix B: Managing Risk

Large corporations with at least 500 employees can offer their employees a simple 401(k)retirement plan that allows for greater contribution maximums.

One drawback to buying a home compared to renting is that your monthly mortgage payments will increase,while rental payments are fixed.

People who have health insurance seldom need disability insurance.

IRAs,401(k),and Keogh plans all include incentives to encourage saving for retirement.

An IRA (individual retirement account)is a tax-deferred investment plan that encourages workers to save for retirement.

The people who assist families in developing a comprehensive program that covers investments,taxes,insurance,and retirement plans are called:

One benefit of a simple IRA is that it allows:

Ima Safer,who recently graduated from college and got a full time job,has prepared her first personal budget and found a pleasant surprise.After taking into account her expected monthly income and all of her ordinary expenses,including the monthly payment on her credit card,she should have some money left over.If Ima is like most young people who are just starting out,the best thing for her to do with the extra money would be to:

One strategy used to lower car insurance premiums is to choose a policy with a large deductible.

Given a 25% tax bracket,the after-tax cost of a house mortgage interest payment of $1,000 would be:

The best way to save money is to:

Which of the following is an indication that the government has recognized that problems with Social Security funding make it highly unlikely that future Social Security benefits will be sufficient to provide retirees with enough income for a comfortable retirement?

Which of the following is a benefit unique to buying a duplex,as opposed to the purchase of a single-family home?

A Roth IRA offers employees an incentive to save for their retirement by:

A good way to save money is to spend all of your regular income,but have a strict rule to put any money from unexpected or unusual sources (such as overtime pay,bonuses,gifts,gambling payouts,or contest prizes)into a savings account.

Both the Roth and traditional IRA allow individuals to put as much money as they want into their retirement account.

A benefit of using credit cards is that they:

Lucy has prepared her personal balance sheet and found that her total assets are $54,000 and her total liabilities (largely college loans)are $48,000.This indicates that Lucy's:

Which of the following accounting statements would assist an individual in taking inventory of personal assets and liabilities?

An umbrella policy is an inexpensive policy that provides financial protection only in the event of clearly defined major catastrophes such as hurricanes or earthquakes-events which are referred to in the insurance industry as "rainy days."