Final Exam Review

The government program that provides health insurance to individuals who are 65 years of age or older.

Medicare

Bonds issued by state and local government agencies

Municipal Bonds

Bills that are to be paid off within a year are called

Current liabilities

True or False: Since real estate brokers are licensed and bonded, they are required to give you unbiased information about real estate purchases.

False

The cash flow statement reports a person’s or family’s __________.

Current income and payments

The legal document granting a person the power to make specific health care decisions for you.

Durable Power of Attorney for health care

True or False: The traditional IRA allows tax-deductible contributions of up to $4000 for individuals who are not covered by employersponsored retirement plans or meet income qualification if they have an employer plan.

True

True or False: In order to be valid, a will bust be dated, signed, and witnessed.

True

The federal law that allows you to continue health insurance coverage through your former employer’s plan for 18 months after you stop work.

COBRA

Is an order to execute a transaction to buy or sell a stock only if the price is within the range specified.

Limit order

True or False: If no one else relies on your income, life insurance may not be necessary.

True

True or False: Advantages of whole life insurance policies are that they provide long-term coverage, the rates are fixed, and they have a savings or cash value feature.

True

Established to transfer assets taxfree from a company retirement plan.

Rollover IRA

Wealth calculated by deducting money that you owe from the value of the things you own.

Net Worth

True or False: Employers have an option of whether or not to match an employee’s Social Security and
Medicare taxes.

False

ARM stands for

Adjustable Rate Mortgage

True or False: An example of a depository financial institution is an insurance company.

False

On the purchase of a home, one
“point” is equal to what?

1 percent of the amount being financed

True or False: Social Security provides sufficient income to support the lifestyles of most individuals.

False