1. You're interested in a retirement plan for employees that allowsthem to invest before tax dollars in a tax deferred SAVING PLAN .You should consider a
A. guaranteed investment contract.
B. 401(k) plan.
C. profit-sharing plan.
D. qualified pension plan.
2. Which of the following is a correct statement about a will?
A. If there's no tax clause in a will, no taxes need be paid.
B. If there's no tax clause in a will, the apportionmentstatues APPLY .
C. If there's no tax clause in a will, AN ATTORNEY will calculate them.
D. If there's no tax clause in a will, the disposition provisionapplies.
3. Which of the following is a correct statement regarding a DEFERRED ANNUITY ?
A. It's an excellent savings and retirement vehicle even though it has no tax advantages.
B. It has a limitation in that you must pay for the entire annuity with a single up frontpayment.
C. It can't be used very well with an estate plan because it has no survivorship benefit.
D. It's the opposite OF LIFE INSURANCE since it provides for the systematic liquidation ofsavings.
4. The aging of Americans will have an economic impact on SOCIAL security trust funds andprivate pensions based on projections during the next twenty years. What best describesthe aging DEMOGRAPHICS in terms of the percentage of the population over age 65?
A. Stable C. Slight increase
B. Declining D. Substantial increase
5. With respect to SOCIAL security benefits, which statement is true?
A. Benefits are calculated solely based on payments to the trust fund.
B. Benefits are based solely on need.
C. If you retire at age 62, your benefits will be reduced.
D. You can receive full benefits with twenty quarters of wages subject to FICA.