the economics of money, banking, and financial markets

334 #

© 2014 Pearson Canada Inc.#

12. 
    

    ____ policies have no cash value and provide insurance only.
    A) Endowment insurance
    B) Term life insurance
    C) Permanent insurance
    D) Annuity insurance
    Answer: B
    Diff: 1 Type: MC Page Ref: 272
    Skill: Recall
    Objective List: 12.1 Identify the important aspects of the insurance industry

    
    


13. 
    

    ____ policies have a cash value which the policyholder can claim by cancelling the
    policy.
    A) Endowment insurance
    B) Term life insurance
    C) Permanent insurance
    D) Annuity insurance
    Answer: C
    Diff: 1 Type: MC Page Ref: 272
    Skill: Recall
    Objective List: 12.1 Identify the important aspects of the insurance industry

    
    


14. 
    

    Permanent life insurance is also known as ____.
    A) endowment insurance
    B) term life insurance
    C) dowry insurance
    D) annuity insurance
    Answer: A
    Diff: 1 Type: MC Page Ref: 272
    Skill: Recall
    Objective List: 12.1 Identify the important aspects of the insurance industry

    
    


15. 
    

    ____ are arrangements whereby the customer pays an annual premium in exchange for a
    future stream of annual payments beginning at a set age and continuing until death.
    A) Endowments
    B) Term life
    C) Dowrys
    D) Annuities
    Answer: D
    Diff: 1 Type: MC Page Ref: 272
    Skill: Recall
    Objective List: 12.1 Identify the important aspects of the insurance industry