PFM Final Exam Review 5/6

Group insurance policies are usually____

An insurer agrees to assume an identified risk when the policyholder pays a fee called the

Which of the following is typically the first stage of investing?

___ occurs when you buy something without thinking about it.

One main distinction between stocks and bonds is that

Government-sponsored health insurance for people with low incomes is called

A/An__ is a loan investors make to corporations/governments that pays fixed interest over time.

The use of long-term savings to earn a financial reward is called

Which of the following is the most risky investment?

A professionally managed group of investments bought using a pool of money from many investors

Using dividends previously earned on a stock to buy more shares is called

A/An _________is the first time a company sells shares of itself to the public to raise capital

Which of the following tells you the market price for a share of a mutual fund?

When you leave employment but continue health insurance under this plan for a limited time.

What is the goal of an income fund?

Buying insurance is an example of

A(n) ________ mortgage on which the interest rate does not change during the term of the loan.

Which of the following vehicles would most likely have the highest insurance rate?

An increase in the value of a stock over time is called a(n)

A __________________ is a collection of investments.

Which of the following is an example of a speculative risk?

Choosing a lower insurance premium will result in paying a __________ deductible.

Which of the following will NOT cause a higher car insurance premium?

Which of the following will likely result in lower insurance costs?

This type of risk includes the cost of another person’s losses for injuries at your property

This type of risk is caused by the business cycle.