MM TEKS Review Spr24

The out-of-pocket cost to the insured when a loss occurs is called

• premium

• deductible

• claim

• policy

The emphasis of savings is on

 

• growth over time.

• safety principle.

• risky investments

• . the accumulation of wealth

Which of the following is a risk-free investment?

• Stocks

• Money Markets Accounts

• Corporate Bonds

• Real Estate

Which of the following is a justifiable reason for not refunding a tenant's security deposit?

• normal wear and tear of premises

• holes in the walls

• excessive noise

• none of these

The higher the rating on an investment grade bond'

• the higher the interest rate you will earn

• the lower the interest rate you will earn

• the more speculative it is

• none of these

Which of the following is true of an FHA mortgage loan?

• It requires you to pay a monthly mortgage insurance premium

• It allows for a smaller down payment

• It is backed by the Federal Housing Administration (FHA).

• All of these are true

An investment portfolio should

• have a strong foundation of safe investments

• concentrate on a single investment

• exclude any high-risk investments

• none of these

When a company's overseas factory is destroyed during protests and rioting, this is an example of

• inflation rate

• industry rate

• political risk

• company risk

The legal process that allows a lender to take possession of a house because the borrower does not meet his or her mortgage obligations is called

• garnishment

• foreclosure

• bankruptcy

• discharge

Long-term goals may involve

• planning a vaaction

• saving for college

• retirement planning

• all of these