Quiz Ch 22 – Life Insurance Policy Options
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What life insurance policy combines a fixed death benefit with customizable investment options for the policy’s cash value?
What life insurance policy combines a fixed death benefit with customizable investment options for the policy’s cash value?
Which life insurance option offers a death benefit and a tax-deferred savings plan with a fixed interest rate?
What is the main objective of life insurance companies when they pursue investments for the long term?
Which institution operates with the lengthiest investment horizon?
What action could a bank take to reduce interest rate risk if its assets’ maturity exceeds that of its liabilities?
What is the term for the risk of a significant reduction in investment principal due to a market downturn?
Which institution prioritizes stable investment returns alongside fluctuating liabilities?
Which investment should an investor refrain from considering a focus on maximizing liquidity?
Given Medfield College’s endowment fund constraints, which statements are accurate?
Which investment option aligns best with this goal to minimize interest rate risk with a planned payout of $250,000 in 5 years?