Sample Exam 2014 on Financial Planning, Exams of Financial Management

Download Sample Exam 2014 on Financial Planning and more Exams Financial Management in PDF only on Docsity! Financial Planning Exam II Sample Exam 2014 True/False Indicate whether the sentence or statement is true or false. ____ 1. Some of the issues that the Affordable Health Care Act are attempting to address are: (1) the rising cost of health care in the US, (2) the large segment of the US population of around 49 million that are not covered under a health insurance plan, and (3) elimination of pre-existing conditions by insurers that allows them to avoid coverage for those seeking insurance. ____ 2. Major medical insurance is a supplement to your existing health insurance coverage that pays for catastropic medical bills beyond those covered under basic health insurance offered under a Preferred Provider Organization [PPO] or HMO plan. ____ 3. The co-nsurance or co-payment provision in your health insurance plan represents the amount you will pay for the medical treament you receive from your physician. ____ 4. Property inventories are unimportant to identify insurance needs involving what should to be insured, because you don't have to substantiate what is lost in order to file a claim and receive a settlement from your insurer. ____ 5. Losses caused by floods to homeowners are not covered in a standard homeowners' policy because most homes that face property losses due to flooding can obtain coverage through the federal government's own flood insurance program. ____ 6. Liability claims may result from alleged act of negligence on the part of a homeowner due to the failure to provide a standard level of care when owning property. ____ 7. Nancy's house has been completely destroyed by fire. Prior to the accident, the house had a value of $100,000. Nancy had two separate policies totaling $60,000 each. She may collect $60,000 from each insurance company. ____ 8. Investing and speculating are two entirely different activities, investing represents the deployment of funds in an activity where there is a low risk of losing principal, whereas, speculation involves placing funds in an enterprise where there is great risk to losing those dollars. ____ 9. From a financial planning standpoint, two prerequisites to investing are adequate insurance and liquidity; you can not invest funds long term unless you are fully covered for unexpected losses and you have sufficient funds to meet current expenses. ____ 10. There are more companies traded in the over-the-counter market than on any exchange; organized exchanges such as the NYSE or the AMEX limit their listed securities and have less companies than say the NASDAQ to trade. ____ 11. John and Mary Smith own 500 shares of Archer Daniels Midland [ADM] stock. After the company pays a 6 percent stock dividend, John and Mary will own 530 shares of ABE stock. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 12. A type of health insurance organization that employs a set of doctors to provide health care services to member patients from a central facility is called a: a. Group HMO b. Indemnity Plan c. PPO d. Point of Sale Health program e. Networked Indemnity Health Provider Organization ____ 13. OASDHI, sometimes called social security, actually refers to the following: a. Old-Age, Survivor's, Disability, and Hospital Insurance. b. Old-Age, Survivors, Disaster, and Home Nuring Insurance. c. Old-Age, Survivor's, Disability, and Health Insurance. d. Old-Age, Singles, Disability, and Hospital Insurance. e. Old -Age, Singles, Disability and Health Insurance ____ 14. Given a $250 annual deductible, a $5,000 lid on the coinsurance, 80/20 coinsurance, and a $250,000 policy limit, how much of a $27,500 medical bill will be paid by the insured? a. $ 250 b. $4,750 c. $5,450 d. $5,250 e. $5,700 ____ 15. In order to qualify for disability insurance under social security, and one similar to other disability policies employing a restrictive definition of diability is that a person must be a. unable to carry out the duties of the current job. b. unable to carry out the duties of any job. c. ill for at least two years. d. willing to undergo rehabilitation. e. none of these ____ 16. Factors to consider when selecting a health insurance plan is (are): a. Cost of the plan in relation to your choice of doctor b. Types of coverage you need to have and how well the plan fits those needs c. The impressive nature of the doctor and hospital marketing program to extol the fast, friendly care provided to patients regardless of cost and need d. All of the above e. Only (a) and (b) ____ 17. The principle of _________ states that an insured should not be compensated by an insurance company in an amount exceeding the economic loss. a. subrogation b. insurable interest c. coinsurance d. indemnity e. utmost good faith ____ 18. Coinsurance is a policy provision to discourage the policyholder from being a. overinsured. b. underinsured. c. insured only if specified by lending agency. d. insured with more than one company. e. insured by government agencies. ____ 19. The form of homeowner's insurance that is incorrectly paired with the insured is a. HO-1, homeowner. b. HO-2, homeowner. c. HO-3, renter. d. HO-8, homeowner. e. HO-6, condominium owner. ____ 20. Section I of the homeowner's insurance policy covers ____ 33. Sunshine Mining Bonds have a $1,000 face value, pay $95 annual interest, mature in 2004, and are currently quoted at $1,302.50. The coupon rate of interest is a. 8.500%. b. 9.500%. c. 13.025%. d. 13.052%. e. can't tell from the information given. Financial Planning Exam II Sample Exam 2014 Answer Section TRUE/FALSE 1. T 2. T 3. T 4. F 5. T 6. T 7. F 8. T 9. T 10. T 11. T MULTIPLE CHOICE 12. A 13. C 14. D 15. B 16. E 17. D 18. B 19. C 20. D 21. C 22. E 23. A 24. A 25. E 26. C 27. E 28. B 29. A 30. B 31. C 32. C 33. B