Investments, Insurance

How does show actions taken by the Federal Reserve System affect interest rates.

• From the central bank's role as lender of last resort, to the Fed's "dual mandate" of price stability and maximum employment, to new policy tools devised during the recent financial crisis, "The Fed Explains Monetary Policy" fulfills its title.

• When there is too much money in the economy, the Fed worries about inflation and make take some actions to raise interest rates which makes loans more expensive and should slow the economy down.

• When there is not enough money circulation (or circulating fast enough) the Fed may take some actions to lower interest rates and encourage more consumer activity.

• both b and c

Traditional IRAs are tax-deductible for the year the contributions are made, while Roth IRAs provide

tax breaks at the time of withdrawal.

• True

• False

The advantages of having whole life insurance coverage, whole life policies have a savings component that can provide cash value on the policy & insurance coverage usually lasts for policyholder’s entire lifetime

• True

• False

Which are characteristics of ideally insurable risk

• Loss must be determinable and measurable

• Premium must be economically feasible

• loss should not be catastrophiL

• Large number of exposure units

• All the above

Direct ownership in a company by shares, value rises and

falls based on wide variety of uncontrollable variables

• Bonds

• Saving Accounts

• Stocks

• Mutual Funds

High Risk, High Reward, Very Low Reward, Medium Risk, Medium Reward, Low Risk, Low Reward

• Savings Accounts and

  CDs, Mutual Funds, Stocks, Bonds

• Bonds, Mutual Funds, Savings Accounts and

  CDs, Stocks

• Stocks, Mutual Funds, Bonds, Savings Accounts and

  CDs

• Stocks, Savings Accounts and

  CDs, Mutual Funds, Bonds

Real estate will be an investment that offers a significant return and may investment lack liquidity.

• True

• False

Homeowner insurance is an example of risk transfer.

• True

• False

When was the Federal Reserve System Established?

• 1915

• 1919

• 1910

• 1913

The Fed" refers to the....

• Federal All in All

• Federal Reserve System

• Federal Reserve Bank

• United States