Question

I am a potential source of investment. I combine small savers funds into a diversified portfolio of a targeted invest involving certain types of stocks or bonds, as advertised in a prospectus. I then pay my investors based upon the performance of the overall portfolio. Who am I?

	a.	a Certificate of deposit
	b.	a Mutual Fund
	c.	a Savings Account
	d.	a Medicare Savings Plan
	e.	a Medicaid Savings Plan

The "Needs Analysis Method" of determining how much life insurance to buy, which can also be used in determining the amount of disability coverage, consists of

	a.	dividing your annual income by a market interest rate.
	b.	multiplying your annual income by a fixed factor.
	c.	dividing your total wealth by a market interest rate.
	d.	determining your household's continuing economic expenses minus your household's existing financial resources if the adverse event occurs.
	e.	determining how much inheritance is appropriate for your children.

A homeowner's policy typically covers a total loss to the home equal to

	a.	the market value based upon the initial year that the policy was taken out.
	b.	its initial value when it was newly built.
	c.	its current market value.
	d.	its replacement cost.
	e.	the balance on the existing mortgage.

Answer 1

Answer: Option (b) a Mutual Fund

Explanation:- A Mutual Fund is a diversified portfolio of a targeted invest involving certain types of stocks or bonds, as advertised in a prospectus which pays the investors based upon the performance of the overall portfolio.)

Answer: Option (d) determining your household's continuing economic expenses minus your household's existing financial resources if the adverse event occurs.

Explanation:- The "Needs Analysis Method" of determining how much life insurance to buy consists of determining total economic resources needed and financial sources which are available after the death of the insured person and then subtracting the available resources from the amount needed in order to calculate insurance need.)

Answer: Option (c) its current market value

Explanation:- If the home is considered a total loss, the insurance company might reimburse the owner for the house's current market value.