FIN 2100 Final Exam Questions and All
Correct Answers 2025-2026 Updated.
In the event of a dispute, the written terms of the signed sales agreement will prevail
t/f - Answer True
You should always find your cheapest source of financing for a car prior to actually visiting a car
dealer to shop for cars - Answer true
Service warranty contracts are generally considered good deals. - Answer false
what does PITIstand for, and which of these four items are escrowed each month - Answer
principal and interest (paid to mortgage company), property taxes (escrowed) and homeowners
insurance (escrowed)
most expensive health plan to least expensive - Answer a. POS (middle cost)
b. PPO (highest cost
c. HMO (lowest cost)
Real estate agent commissions are generally paid by the buyer - Answer false
life insurance policies that would build "cash value - Answer whole life
variable life
universal life
3. What do each of these numbers represent in an auto insurance policy: 100/300/50 - Answer
100,000 is the maximum that would be paid to one individual in an accident
300,000 is the maximum that would be paid for all claims in a single accident (incident)
50,000 is the maximum property damage that would be paid for an accident
1. A mutual fund's performance is best measured by - Answer total return
2. If a fund charges an expense ratio of 1% for the current year - Answer Your fund returns
will be reduced by 1% in the current year
, dollar cost averaging is - Answer *An approach in which you invest the same amount of
money in a fund at regular intervals
goal of an index fund is to - Answer Track the investment return of a specific stock index or
bond index
Common stocks always provide higher returns than bonds and money market investments t/f -
Answer false
4. When you invest in an employer's retirement savings plan such as a 401-K, your contributions
are taxed - Answer when you withdraw them during retirement
5. If interest rates decline, the price of a bond or bond fund will generally: - Answer increase
a funds after tax return may be influenced by - Answer The fund's pre-tax return
The fund's buying and selling of securities
The fund's distribution of capital gains and dividends
10. Mutual funds are insured by the Federal Deposit Insurance Corporation. - Answer false
9. From 1926 to 2012, the average total return per year for large cap U.S. stocks was around: -
Answer 10%
11. If two mutual funds hold the same securities, but one has higher operating expenses than
the other one, which of the following statements is true? - Answer The fund with the lower
expenses will have a higher return
12. The best predictor of future mutual fund performance is - Answer the expense ratio
not an attribute of mutual funds. - Answer guaranteed returns
16. Which type of investment has generally offered the best protection against inflation over
long periods of time? - Answer stocks
Income earned on municipal bonds or dividends paid by municipal bond funds are generally
exempt from federal taxes - Answer true
a charge to purchase mutual fund shares is frequently called - Answer a sales load
Correct Answers 2025-2026 Updated.
In the event of a dispute, the written terms of the signed sales agreement will prevail
t/f - Answer True
You should always find your cheapest source of financing for a car prior to actually visiting a car
dealer to shop for cars - Answer true
Service warranty contracts are generally considered good deals. - Answer false
what does PITIstand for, and which of these four items are escrowed each month - Answer
principal and interest (paid to mortgage company), property taxes (escrowed) and homeowners
insurance (escrowed)
most expensive health plan to least expensive - Answer a. POS (middle cost)
b. PPO (highest cost
c. HMO (lowest cost)
Real estate agent commissions are generally paid by the buyer - Answer false
life insurance policies that would build "cash value - Answer whole life
variable life
universal life
3. What do each of these numbers represent in an auto insurance policy: 100/300/50 - Answer
100,000 is the maximum that would be paid to one individual in an accident
300,000 is the maximum that would be paid for all claims in a single accident (incident)
50,000 is the maximum property damage that would be paid for an accident
1. A mutual fund's performance is best measured by - Answer total return
2. If a fund charges an expense ratio of 1% for the current year - Answer Your fund returns
will be reduced by 1% in the current year
, dollar cost averaging is - Answer *An approach in which you invest the same amount of
money in a fund at regular intervals
goal of an index fund is to - Answer Track the investment return of a specific stock index or
bond index
Common stocks always provide higher returns than bonds and money market investments t/f -
Answer false
4. When you invest in an employer's retirement savings plan such as a 401-K, your contributions
are taxed - Answer when you withdraw them during retirement
5. If interest rates decline, the price of a bond or bond fund will generally: - Answer increase
a funds after tax return may be influenced by - Answer The fund's pre-tax return
The fund's buying and selling of securities
The fund's distribution of capital gains and dividends
10. Mutual funds are insured by the Federal Deposit Insurance Corporation. - Answer false
9. From 1926 to 2012, the average total return per year for large cap U.S. stocks was around: -
Answer 10%
11. If two mutual funds hold the same securities, but one has higher operating expenses than
the other one, which of the following statements is true? - Answer The fund with the lower
expenses will have a higher return
12. The best predictor of future mutual fund performance is - Answer the expense ratio
not an attribute of mutual funds. - Answer guaranteed returns
16. Which type of investment has generally offered the best protection against inflation over
long periods of time? - Answer stocks
Income earned on municipal bonds or dividends paid by municipal bond funds are generally
exempt from federal taxes - Answer true
a charge to purchase mutual fund shares is frequently called - Answer a sales load
