PN 3006 FINAL EXAM2025/2026 ACTUAL EXAM COMPLETE 315 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
For long term investments, a 30-year-old should have about ___ invested in equity
securities. - ANSWER - 80%
Generally, the two main employer benefits with the highest value are: - ANSWER -
Retirement and health plans
Generally, you need to plan to stay in a house for about ______ years to reduce the risk of
losing money on the house when you resell it. - ANSWER - 5 Years
Having mortgage debt is generally considered better than having credit card debt. -
ANSWER - True
If a company's earnings do not vary much with the economy, it would be called a ____
stock. - ANSWER - Defensive
If all of your money was invested in the S&P 500 Index, you would still have systematic or
market risk as well as investment style risk. - ANSWER - True
If an individual gets several quotes on a new mortgage within a two-week period, it should
not immediately impact their credit score. The credit score may later be impacted by the
size of the mortgage and related monthly payments. - ANSWER - True
If an investment advisor is acting as a fiduciary, then he or she is obligated to offer you
financial products that are in your best interest. This means that fiduciaries are NOT likely
to offer you "load" funds or mutual funds with high fees since these types of funds provide
high commissions to the advisor and are not usually in your best interest. - ANSWER - True
If interest rates decrease, the price of a bond will: - ANSWER - Increase
If the annual interest rate is 12%, the monthly periodic rate would be: - ANSWER - 1%
If we experience a rapid increase in inflation, the Federal Reserve would likely ________
interest rates. - ANSWER - increase
If you buy a larger size of a product, the price per unit (such as price per ounce) will always
be lower. - ANSWER - False
,If you can limit annual withdrawals from your 401-K to no more than ____, then your money
should last forever. - ANSWER - 4%
If you have $325,000 saved for retirement, how many years will it last if you earn an annual
interest rate of 6.25% and withdraw $30,000 at the end of each year? - ANSWER - 19
If you need life insurance because of a large mortgage or dependent children, you should
normally buy: - ANSWER - Term life because it's cheaper.
If you resign from a job, you will not be entitled to unemployment compensation. -
ANSWER - True
In comparison to a 15-year fixed rate mortgage, a 30-year fixed rate mortgage will: -
ANSWER - Pay more in total interest over the life of the loan
In general, applying for and receiving new credit cards will tend to decrease your FICO
score. - ANSWER - True
In most cases, service warranty contracts provide excellent protection and are generally
good deals. - ANSWER - False
In order to get the lowest interest available, your FICO score should be: - ANSWER - 760
and above
In the event that you had $10,000 to invest in a bank Certificate of Deposit (CD), what
would be your best course of action in the event that you believed interest rates were likely
to increase in the coming years? - ANSWER - Invest in a short-term CD and roll it over as it
expires to another short-term CD
Incurring significant amounts of student debt will impact your future borrowing power for a
home or car loan. - ANSWER - True
Individuals should normally have at least _______ months of pay or living expenses in
emergency savings. - ANSWER - 3
Insurance companies are allowed to review and consider your credit score before quoting
a premium. - ANSWER - True
Interest rates for corporations and individuals are set based on the Treasury Yield Curve on
any given day. The curve represents the cost of borrowing for the federal government, and -
, ANSWER - Is generally upward sloping, with short term interest rates being lower than long
term interest rates
Interest rates on 30-year fixed rate mortgages tend to follow or correlate with: - ANSWER -
The 10-year treasury note rate
Interest rates paid by corporations and individual are normally derived from the current: -
ANSWER - The treasury yield curve
Is always advisable to have your auto financing arranged in advanced before you start
negotiating on a car. - ANSWER - True
It is always a good idea to purchase disability insurance if offered by your employer. -
ANSWER - True
It is generally a good idea to co-sign a loan for another individual in the event they do not
qualify for a loan. - ANSWER - False
It is illegal for an employer to review your credit report as part of the application process. -
ANSWER - False
It is never a good idea to prepay something for a discount due to the risk involved. -
ANSWER - False
It is possible that canceling an old credit card with no balance due could hurt your credit
score. - ANSWER - True
Leasing cars is generally much cheaper than buying cars since the payment is so much
lower. - ANSWER - False
Mid cap stocks would be all stocks with a market capitalization between: - ANSWER - $2
and $10 billion
Monthly escrow for property taxes and insurance can add up to ____ more to the mortgage
payment. - ANSWER - 40%
Most experts recommend that consumers "freeze" their credit files as a result of recent
data leaks at Equifax. - ANSWER - True
Most professional portfolio managers can't beat the returns of index funds over the long
term. - ANSWER - True
DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
For long term investments, a 30-year-old should have about ___ invested in equity
securities. - ANSWER - 80%
Generally, the two main employer benefits with the highest value are: - ANSWER -
Retirement and health plans
Generally, you need to plan to stay in a house for about ______ years to reduce the risk of
losing money on the house when you resell it. - ANSWER - 5 Years
Having mortgage debt is generally considered better than having credit card debt. -
ANSWER - True
If a company's earnings do not vary much with the economy, it would be called a ____
stock. - ANSWER - Defensive
If all of your money was invested in the S&P 500 Index, you would still have systematic or
market risk as well as investment style risk. - ANSWER - True
If an individual gets several quotes on a new mortgage within a two-week period, it should
not immediately impact their credit score. The credit score may later be impacted by the
size of the mortgage and related monthly payments. - ANSWER - True
If an investment advisor is acting as a fiduciary, then he or she is obligated to offer you
financial products that are in your best interest. This means that fiduciaries are NOT likely
to offer you "load" funds or mutual funds with high fees since these types of funds provide
high commissions to the advisor and are not usually in your best interest. - ANSWER - True
If interest rates decrease, the price of a bond will: - ANSWER - Increase
If the annual interest rate is 12%, the monthly periodic rate would be: - ANSWER - 1%
If we experience a rapid increase in inflation, the Federal Reserve would likely ________
interest rates. - ANSWER - increase
If you buy a larger size of a product, the price per unit (such as price per ounce) will always
be lower. - ANSWER - False
,If you can limit annual withdrawals from your 401-K to no more than ____, then your money
should last forever. - ANSWER - 4%
If you have $325,000 saved for retirement, how many years will it last if you earn an annual
interest rate of 6.25% and withdraw $30,000 at the end of each year? - ANSWER - 19
If you need life insurance because of a large mortgage or dependent children, you should
normally buy: - ANSWER - Term life because it's cheaper.
If you resign from a job, you will not be entitled to unemployment compensation. -
ANSWER - True
In comparison to a 15-year fixed rate mortgage, a 30-year fixed rate mortgage will: -
ANSWER - Pay more in total interest over the life of the loan
In general, applying for and receiving new credit cards will tend to decrease your FICO
score. - ANSWER - True
In most cases, service warranty contracts provide excellent protection and are generally
good deals. - ANSWER - False
In order to get the lowest interest available, your FICO score should be: - ANSWER - 760
and above
In the event that you had $10,000 to invest in a bank Certificate of Deposit (CD), what
would be your best course of action in the event that you believed interest rates were likely
to increase in the coming years? - ANSWER - Invest in a short-term CD and roll it over as it
expires to another short-term CD
Incurring significant amounts of student debt will impact your future borrowing power for a
home or car loan. - ANSWER - True
Individuals should normally have at least _______ months of pay or living expenses in
emergency savings. - ANSWER - 3
Insurance companies are allowed to review and consider your credit score before quoting
a premium. - ANSWER - True
Interest rates for corporations and individuals are set based on the Treasury Yield Curve on
any given day. The curve represents the cost of borrowing for the federal government, and -
, ANSWER - Is generally upward sloping, with short term interest rates being lower than long
term interest rates
Interest rates on 30-year fixed rate mortgages tend to follow or correlate with: - ANSWER -
The 10-year treasury note rate
Interest rates paid by corporations and individual are normally derived from the current: -
ANSWER - The treasury yield curve
Is always advisable to have your auto financing arranged in advanced before you start
negotiating on a car. - ANSWER - True
It is always a good idea to purchase disability insurance if offered by your employer. -
ANSWER - True
It is generally a good idea to co-sign a loan for another individual in the event they do not
qualify for a loan. - ANSWER - False
It is illegal for an employer to review your credit report as part of the application process. -
ANSWER - False
It is never a good idea to prepay something for a discount due to the risk involved. -
ANSWER - False
It is possible that canceling an old credit card with no balance due could hurt your credit
score. - ANSWER - True
Leasing cars is generally much cheaper than buying cars since the payment is so much
lower. - ANSWER - False
Mid cap stocks would be all stocks with a market capitalization between: - ANSWER - $2
and $10 billion
Monthly escrow for property taxes and insurance can add up to ____ more to the mortgage
payment. - ANSWER - 40%
Most experts recommend that consumers "freeze" their credit files as a result of recent
data leaks at Equifax. - ANSWER - True
Most professional portfolio managers can't beat the returns of index funds over the long
term. - ANSWER - True
