Math Unit Eleven

Card Set Information

Author:
Beth7nn
ID:
77776
Filename:
Math Unit Eleven
Updated:
2011-04-06 13:45:44
Tags:
math
Folders:

Description:
Terms for test 11
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Beth7nn on FreezingBlue Flashcards. What would you like to do?


  1. What is the primary purpose of life insurance?
    To provide financial comensation to dependents following a death.
  2. An optional, added policy feature that may or may not increase the cost of the insurance policy:
    Rider
  3. Three major types of life insurance policies:
    Term, lifetime, and endowment
  4. The least expensive insurance and provides temporary protection for a specified number of years:
    Term Life Insurance
  5. Person named to receive the death beneift of the policy:
    Beneficiary
  6. Amount of insurance coverage purchased:
    Face value
  7. This allows the policyholder to renew the term insurance at a higher rate:
    Renewable term
  8. Two types of lifetime policies:
    Straight life and limited-payment life
  9. This life insurance is usually paid for throughout the life of the policyholder:
    Straight Life
  10. This life insurance has payments for a limited number of years:
    Limited-payment Life
  11. Is the annual cost for limited-payment life higher or lower than it is for straight life?
    Higher
  12. What is the most expensive type of life insurance?
    Endowment Policy
  13. What do the rates for a lifetime policy depend upon?
    • 1. Type of policy purchased
    • 2. Age at time of purpose
    • 3. Male or Female
    • 4. Number of units purchased
  14. A face value of $1,000:
    Unit
  15. Insurance payments:
    Premiums
  16. The more frequent the payment, the higher or the lower premium due?
    Higher
  17. Benefits besides the death benefit which are paid to the beneficiary build up a what?
    Cash Value
  18. The beneficiary may also borrow against the cash value and...
    ...continue their insurance protection
  19. The beneficiary cancels the insurance policy and uses its value to convert to term insurance with the same face value but for a limited time of coverage:
    Extended Term
  20. This allows the policyholder, who is terminally ill, to receive all or part of the death proceeds before death:
    Accelerated Death Benefit
  21. A percentage of the company's proft:
    Dividend
  22. The beneficiary collects the full face value in one payment:
    Lump Sum Payment
  23. A specified amount of money which is paid in equal payments at regular intervals:
    Annuity
  24. Four ways a beneficiary may receive an insurance annuity:
    Fixed amount, fixed number of years, lifetime, and a life annuity which is guaranteed
  25. This allows a beneficiary to receive their annuity in specific monthly payments until the money runs out:
    Fixed Amount
  26. This allows a beneficiary to receive their annuity for a specific time length (10 years):
    Fixed number of years
  27. This allows a beneficiary to receive their annuity in gradual payments for their entire life:
    Lifetime
  28. This allows a beneficiary to receive their annuity in monthly payments for a certain number of years:
    Life annuity which is guaranteed
  29. A certificate issued by a government or corporation promising to pay the face value at maturity plus interest at certain intervals:
    Bond
  30. One who owns a bond:
    Bondholder
  31. As a bondholder, the person is not an owner, but is a...
    ...creditor
  32. Bonds sold at face value:
    Par value
  33. Bonds sold greater than the face value:
    Premium
  34. Bonds sold less than the face value:
    Discount
  35. Cost of a bond:
    Quoted Price
  36. An individual licensed to make stock and bond sales:
    Broker
  37. Broker's commission:
    Brokerage Fee
  38. Many investors consider what as a good source of stock and bond information?
    Wall Street Journal
  39. How is the net change found?
    By subtracting the previous day's closing price from the present day's closing price
  40. A savings account usuallys pays a higher or lower interest rate than bonds?
    Lower
  41. Which are less risky, bonds or stocks?
    Bonds
  42. The return on an investment:
    Annual yield
  43. Formula for Annual Yield:
    • annual interest
    • Annual Yield = selling price of bond
  44. The amount a seller receives from the sale of bonds:
    Proceeds
  45. Earned interest that is not payable until the end of the current interest period:
    Accrued interest
  46. When finding the accrued interest period, what is counted?
    The first day but not the last
  47. Cash or assets that can be easily converted into cash:
    Liquid
  48. Two types of stock:
    Common and preferred
  49. Which stockholder votes for the company's board of directors and administrative officers?
    Common stockholders
  50. Which stockholders receive dividends?
    Preferred stockholders
  51. The price for which the stock is initially sold:
    Par value
  52. Stock with no printed value:
    No-par stock
  53. The current selling price quoted in dollars per share:
    Market price
  54. The dividend as a percent of the closing price:
    Yld%
  55. Formula for Yld%
    • annual dividend per share
    • Yld% = closing price per share
  56. An abbreviation for price to earnings ratio and is a ratio of the closing market price to the corporation's annual earnings per share:
    P-E Ratio
  57. Formula for P-E Ratio:
    • closing market price
    • P-E Ratio = corporation's annual earnings per share
  58. An abbreviation for net change and refers to the difference between this day's closing price and the previous day's closing price:
    Net Chg
  59. Formula for Net Chg:
    Net Chg = closing price today - closing price yesterday
  60. Stocks sold in multiples of 100 shares are called...
    ...round lots
  61. Stocks sold less than 100 shares a time:
    Odd lots
  62. Stocks bought directly from the company:
    No-load Stocks
  63. Profits distributed by the corporation:
    Cash Dividends
  64. Shareholders receive additional shares at no cost to them:
    Stock Dividend
  65. Rising stock market prices:
    Bull market
  66. Selling stocks in anticipation of falling prices:
    Bear market
  67. Profit made on the sale of stock:
    Capital gain
  68. A loss on the sale of stock:
    Capital loss
  69. Formula for capital gain:
    Capital Gain = net proceeds - cost of stock
  70. Formula for capital loss:
    Capital Loss = cost of stock - net proceeds
  71. The selling price of the stock minus the brokerage fee charged to the stockholder for selling the stock:
    Net proceeds

What would you like to do?

Home > Flashcards > Print Preview