study these Flashcards
Review Auto Insurance p. 315+
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What are the provisions of an automobile insurance policy - coverage provisions A-D and other? p.316+
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In a homeowner’s policy, what is a deductible? If Eric had a loss of 5,000 and a $500 deductible, what is the amount the homeowner’s policy would pay him for t loss?
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12 - Which gives you more flexibility when selecting doctors and hospitals?
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Review the legislation affecting health care insurance pg 354-356.
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Is a “preexisting condition” treated differently under the ACA? Compare the preexisting condition clause on p. 351 to the new provisions. p. 356
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Describe the definition of a disability for different policies “your own occupation” and “any occupation” and explain why this is one of the most important aspects of a disability policy. P 359
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13- Reveiw decreasing-term insurance; mortgage life insurance and group term insurance p. 381
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Compare the costs of Whole Life policies to Term Life Policies. p. 382 Is it expensive for young families? What is meant when a salesman tells you whole life policy has an investment element? Explain
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14- Describe the 5 Types of Investments p. 405++
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Review returns from investing in Stocks p. 409 What is a growth stock? What is an income stock?
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Bonds p.409 Bonds are debt of a firm (not equity or ownership) and have an obligation to pay interest to the bond investor. The return fixed interest and have the opportunity for capital gain or appreciation. What is a “capital gain” on a bond?
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You will not need to measure the return on your investment p. 410.
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Review “Differing Tax Rates on Returns” p. 410 What is the difference in ordinary income (35% tax rate) for tax purposes and capital gain (15% tax rate) ? How long an asset must be held to qualify for “capital gain?”
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Review the capital gain section of gross income as explained on pg 101 What is the advantage of holding an investment for over 12 months to qualify for the long term capital gain rate?
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What is “Risk from Investing?” p. 413
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Review Risk due to uncertainty surrounding economic conditions. p. 414
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Skip Measuring Investment Risk p. 415
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What is the tradeoff between return and risk for the various investments? p. 415-418
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Study Exhibit 14.2 on pg 418 “How Investment Decisions Vary with Your Situation.” Be prepared to decide how to best invest given circumstances similar to this exhibit.
Reveiw investing mistakes - and don’t make them in real life :)
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15- What is the New York Stock Exchange? p. 432 Review information on NYSE Euronext
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Understand Stock Quotations. Reveiw Exhibit 15.1 example of a daily stock quotation p. 434 Be able to identify and explain each of the columns on your test.
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Describe Purchasing and Selling Stock functions p. 435+
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Briefly review “Analyzing Stocks” p. 438+ Reveiw Exhibit 15.2 p. 440
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How do economic conditions impact a firm’s stock price? p. 440-442
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You will NOT be analyzing a stock however you may be asked if the economy is strong and interest rates are low, what will be the impact on a firm’s stock price for example. Review Exhibit 15.4 p. 443
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`Describe stock valuation process. Exhibit 15.3
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