Inflation reduces the purchasing power of a dollar

1.      All-risk Homeowner insurance policies protect against loss caused by
       a. Fire
       b. Flood
       c. Earthquake
       d. All the above

2.      The best method of comparing credit cost is the

a.      Rule of 78s.

b.     Finance charge and the APR.

c.      Declining balance method

d. Add-on and adjusted balance method 

3.      An investor who wants a tax-free investment would choose a(n) ____________ fund.

a.       balanced

b.      income

c.       sector

d.    municipal bond

4.      A document that prospective mutual fund investors receive is called a(n)

a.       SEC report.

b.      load fund report.

c.       index fund report.

d.      prospectus.

1.      Inflation reduces the purchasing power of a dollar (T/F?)

True

False

2.      Education level is a major influence on person’s potential earning power (T/F?)

True

False

3.      Renting your place of residents has several financial benefits (T/F?)

True

False

4.      Financial Risks are associated with the purchase of a home (T/F?)

True

False

5.      The weighted average cost of capital should be used as the discount rate for average risk projects (T/F?)

True

False