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1.As opposed to broker markets, dealers typically _____________ within ____________.

a.arrange for

sales between buyers and sellers; over the counter markets.

b.arrange for sales between buyers and sellers; exchanges.

c.conduct sales between themselves and others; over the counter markets

d.conduct sales between themselves and others; exchanges 

e.work with the FDIC; their customer deposits


2.The section of a homeowner's or auto insurance policy that covers damages due to personal injuries involving your property, especially due to your actions or negligence, is called

a.replacement cost.

b.collision and comprehensive.

c.the personal property floater.

d.peril coverage.

e.liability.


3.In a Term Life Insurance policy, as an individual continues with the policy over a number of years with a fixed level of coverage

a.the annual premiums will generally increase over time.

b.the annual premiums will generally decrease over time.

c.the annual premiums will generally stay the same over time.

d.the household's equity or wealth due to the policy will increase over time.

e.the household's equity or wealth due to the policy will decrease over time.


4.Insurance companies in general must guard against having a disproportionate number of bad risks as policyholders.  For their own profitability, they need to see the total payouts for a year as a fairly small percentage of the total premiums. This fundamental problem for insurance companies is known as

a.inflation risk.

b.co-insurance.

c.adverse selection.

d.deductible risk.

e.rate of return risk.

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