Question 1

An investment company that sells only a specified number of ownership shares is a:

Accepted Answer

A)  Mutual fund 
B)  No-load fund 
C)  Open-end company 
D)  Closed-end company 
E)  None of the above 
A)  Mutual fund 
B)  No-load fund 
C)  Open-end company 
D)  Closed-end company 
E)  None of the above

Question 2

When an employer converts from a traditional pension plan to a cash balance plan the employer is allowed to decide to transfer ______________ of the accumulated value of the traditional pension into the employee's new account.

Accepted Answer

A)  All 
B)  Only a portion 
C)  None 
D)  A and B 
E)  None of the above 
A)  All 
B)  Only a portion 
C)  None 
D)  A and B 
E)  None of the above

Question 3

The prime beneficiary of the cash balance pension plan is the:

Accepted Answer

A)  Government 
B)  Employee 
C)  Employer 
D)  Bank 
E)  None of the above 
A)  Government 
B)  Employee 
C)  Employer 
D)  Bank 
E)  None of the above

Question 4

Real Estate Investment Trusts (REITs):

Accepted Answer

A)  Originate, sell and service mortgages 
B)  Invest in a diversified pool of real estate property and loans 
C)  Fall under the Investment Company Act of 1940 
D)  Manage real estate property for wealthy investors 
E)  Accept deposits to finance mortgage loans 
A)  Originate, sell and service mortgages 
B)  Invest in a diversified pool of real estate property and loans 
C)  Fall under the Investment Company Act of 1940 
D)  Manage real estate property for wealthy investors 
E)  Accept deposits to finance mortgage loans

Question 5

The 1999 Financial Services Modernization (Gramm-Leach-Bliley) Act has aided the trend of ____ by permitting banks, insurers and securities firms (as well as selected other financial firms) to reach across industry boundaries and link up with each other.

Accepted Answer

A)  Service diversification 
B)  Globalization 
C)  Financial disintermediation 
D)  Convergence 
E)  Homogenization 
A)  Service diversification 
B)  Globalization 
C)  Financial disintermediation 
D)  Convergence 
E)  Homogenization

Question 6

In Europe, many pension plans are required to record their assets at:

Accepted Answer

A)  Cost 
B)  Future value 
C)  Current market value 
D)  Net value 
E)  None of the above 
A)  Cost 
B)  Future value 
C)  Current market value 
D)  Net value 
E)  None of the above

Question 7

Passage of the Pension Protection Act of 2006 has stimulated the growth of lifecycle funds because it encourages businesses to set up employee pension programs even for those employees not wishing to accumulate long-term savings.

Accepted Answer

A) True 
 B)False

Question 8

The passage of the Pension Protection Act of 2006 encourages businesses to set up employee pension programs and has stimulated the growth of:

Accepted Answer

A)  Money market funds 
B)  Stock funds 
C)  Treasury bonds 
D)  Lifecycle funds 
E)  None of the above 
A)  Money market funds 
B)  Stock funds 
C)  Treasury bonds 
D)  Lifecycle funds 
E)  None of the above

Question 9

In a loan to a policyholder by a life insurance company, the policyholder may borrow:

Accepted Answer

A)  Up to the face value of the policy 
B)  Up to the cash value of the policy 
C)  Up to the amount of premiums paid in 
D)  Any amount the company agrees to loan 
E)  None of the above 
A)  Up to the face value of the policy 
B)  Up to the cash value of the policy 
C)  Up to the amount of premiums paid in 
D)  Any amount the company agrees to loan 
E)  None of the above

Question 10

Property/Casualty IS grouped by whether they are agency companies or direct writers. Direct writers sell directly to the public via:

Accepted Answer

A)  The telephone 
B)  The television 
C)  The Internet 
D)  All of the above 
E)  None of the above 
A)  The telephone 
B)  The television 
C)  The Internet 
D)  All of the above 
E)  None of the above

Question 11

Investment company policies are determined by:

Accepted Answer

A)  Fund managers 
B)  Shareholders 
C)  Government regulations 
D)  The funds' trust company 
E)  None of the above 
A)  Fund managers 
B)  Shareholders 
C)  Government regulations 
D)  The funds' trust company 
E)  None of the above

Question 12

Most insurance companies have expanded into the property-casualty insurance industry because of the greater stability it affords.

Accepted Answer

A) True 
 B)False

Question 13

In 2008, about 40 percent of pension fund assets were corporate stocks.

Accepted Answer

A) True 
 B)False

Question 14

In cash balance pension funds employers typically make a hypothetical contribution to an employee's retirement account equal to a percentage of that employee's annual salary and credit the employee's pension account with annual interest earnings based on a reference interest rate, such as the U.S. treasury bond rate.

Accepted Answer

A) True 
 B)False

Question 15

The approximate volume of financial assets held by all U.S. pension funds in 2000 was about:

Accepted Answer

A)  $1 billion 
B)  $4 trillion 
C)  $8 trillion 
D)  $12 trillion 
E)  $20 trillion 
A)  $1 billion 
B)  $4 trillion 
C)  $8 trillion 
D)  $12 trillion 
E)  $20 trillion

An investment company that sells only a specified number of ownership shares is a:

When an employer converts from a traditional pension plan to a cash balance plan the employer is allowed to decide to transfer ______________ of the accumulated value of the traditional pension into the employee's new account.

The prime beneficiary of the cash balance pension plan is the:

Real Estate Investment Trusts (REITs):

The 1999 Financial Services Modernization (Gramm-Leach-Bliley) Act has aided the trend of ____ by permitting banks, insurers and securities firms (as well as selected other financial firms) to reach across industry boundaries and link up with each other.

In Europe, many pension plans are required to record their assets at:

Passage of the Pension Protection Act of 2006 has stimulated the growth of lifecycle funds because it encourages businesses to set up employee pension programs even for those employees not wishing to accumulate long-term savings.

The passage of the Pension Protection Act of 2006 encourages businesses to set up employee pension programs and has stimulated the growth of:

In a loan to a policyholder by a life insurance company, the policyholder may borrow:

Property/Casualty IS grouped by whether they are agency companies or direct writers. Direct writers sell directly to the public via:

Investment company policies are determined by:

Most insurance companies have expanded into the property-casualty insurance industry because of the greater stability it affords.

In 2008, about 40 percent of pension fund assets were corporate stocks.

The approximate volume of financial assets held by all U.S. pension funds in 2000 was about:

Understanding the Financial System and Its Impact on the Economy and Markets

Financial Systems, Monetary Units, and the Role of Money in the Economy

Financial Indices, Market Information, and Economic Data

The Financial Crisis and Its Impact on the Mortgage Market and Economy

Understanding Interest Rates, Savings, and the Wealth Effect

Financial Concepts and Interest Rates

Effects of Inflation and Yield Curves on Stock Prices and Investments

Understanding Risk and Market Factors in Financial Securities

Exploring Financial Markets and Hedging Strategies

Factors Affecting the Volume of CDs

Exploring the Reserve Accounting System, Money Markets, and Financial Instruments

Exploring Central Banks and Their Impact on the Economy and Financial System

Central Banking and Monetary Policy: Exploring Tools and Strategies

Banking and Financial Services: Regulations, Operations, and Trends

Comparative Analysis of Financial Institutions and Their Operations

The Impact of Deregulation and Regulation on Financial Institutions and Banking Industry in the United States

Treasury Auctions, Public Debt, and Government Borrowing: Exploring the Us Treasury System

Corporate Bond Pricing, Market Development, and Financing Strategies

The Truth About Regulation Fd and Stock Holdings: Debunking Common Myths in the Financial Market

Flexible Savings Account Options

Mortgage Market and Mortgage Instruments

International Financial Transactions and Balance of Payments

International Banking and Financial Regulations

Exploring the Complexities of Financial Services and Regulation

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Exam 16: Exploring Various Aspects of Pension Funds, Finance Companies, and Insurance Industry

An investment company that sells only a specified number of ownership shares is a:

When an employer converts from a traditional pension plan to a cash balance plan the employer is allowed to decide to transfer ______________ of the accumulated value of the traditional pension into the employee's new account.

The prime beneficiary of the cash balance pension plan is the:

Real Estate Investment Trusts (REITs):

The 1999 Financial Services Modernization (Gramm-Leach-Bliley) Act has aided the trend of ____ by permitting banks, insurers and securities firms (as well as selected other financial firms) to reach across industry boundaries and link up with each other.

In Europe, many pension plans are required to record their assets at:

Passage of the Pension Protection Act of 2006 has stimulated the growth of lifecycle funds because it encourages businesses to set up employee pension programs even for those employees not wishing to accumulate long-term savings.

The passage of the Pension Protection Act of 2006 encourages businesses to set up employee pension programs and has stimulated the growth of:

In a loan to a policyholder by a life insurance company, the policyholder may borrow:

Property/Casualty IS grouped by whether they are agency companies or direct writers. Direct writers sell directly to the public via:

Investment company policies are determined by:

Most insurance companies have expanded into the property-casualty insurance industry because of the greater stability it affords.

In 2008, about 40 percent of pension fund assets were corporate stocks.

The approximate volume of financial assets held by all U.S. pension funds in 2000 was about:

Understanding the Financial System and Its Impact on the Economy and Markets

Financial Systems, Monetary Units, and the Role of Money in the Economy

Financial Indices, Market Information, and Economic Data

The Financial Crisis and Its Impact on the Mortgage Market and Economy

Understanding Interest Rates, Savings, and the Wealth Effect

Financial Concepts and Interest Rates

Effects of Inflation and Yield Curves on Stock Prices and Investments

Understanding Risk and Market Factors in Financial Securities

Exploring Financial Markets and Hedging Strategies

Factors Affecting the Volume of CDs

Exploring the Reserve Accounting System, Money Markets, and Financial Instruments

Exploring Central Banks and Their Impact on the Economy and Financial System

Central Banking and Monetary Policy: Exploring Tools and Strategies

Banking and Financial Services: Regulations, Operations, and Trends

Comparative Analysis of Financial Institutions and Their Operations

The Impact of Deregulation and Regulation on Financial Institutions and Banking Industry in the United States

Treasury Auctions, Public Debt, and Government Borrowing: Exploring the Us Treasury System

Corporate Bond Pricing, Market Development, and Financing Strategies

The Truth About Regulation Fd and Stock Holdings: Debunking Common Myths in the Financial Market

Flexible Savings Account Options

Mortgage Market and Mortgage Instruments

International Financial Transactions and Balance of Payments

International Banking and Financial Regulations

Exploring the Complexities of Financial Services and Regulation

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