1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
,1. Which of the following financial instruments is primarily used
for retirement savings and offers tax advantages in the United
States?
- A) Savings Account
- B) IRA (Individual Retirement Account)
- C) Corporate Bond
- D) Mutual Fund
- Correct ANS : B) IRA
- Rationale : IRAs provide individuals with tax benefits for
retirement savings, unlike general savings accounts.
2. What is the primary purpose of estate planning?
- A) To avoid taxes during retirement
- B) To ensure the efficient transfer of assets upon death
- C) To select the best savings account
- D) To maximize investment returns
- Correct ANS : B) To ensure the efficient transfer of assets
upon death
- Rationale : Estate planning involves arranging for the
disposal of an individual’s estate to ensure wishes are honored
efficiently.
, 3. In the context of investment strategies, what does the term
'diversification' refer to?
- A) Investing only in stocks
- B) Spreading investments across various asset classes to
reduce risk
- C) Focusing investment solely on historical performance
- D) Concentrating assets in a single investment
- Correct ANS : B) Spreading investments across various
asset classes to reduce risk
- Rationale : Diversification aims to reduce risk by mixing a
wide variety of investments within a portfolio.
4. Which of the following scenarios best describes the "time
value of money"?
- A) A dollar today is worth less than a dollar in the future
- B) A dollar today is worth more than a dollar in the future
- C) Inflation has no effect on investment returns
- D) Savings accounts always yield positive returns
- Correct ANS : B) A dollar today is worth more than a dollar
in the future
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