Which of the following statements is (are) true with respect to the Social Security earnings test? I. The earnings test does not apply to dividends, interest, and rental income. II. The earnings test does not apply to work earnings for those individuals who have reached the full retirement age under Social Security. A) I only […]
All of the following persons are eligible for survivor benefits under Social Security EXCEPT A) dependent parents age 62 or older. B) a surviving brother or sister, age 60 or older. C) a surviving spouse age 60 or older. D) a surviving spouse with eligible children younger than age 16. ANSWER Answer: B
Which of the following statements about disability benefits under Social Security is true? A) There is a one-year waiting period before benefits are payable. B) Benefits are payable as long as the disabled worker is unable to perform his or her regular occupation. C) Benefits are payable only if the condition causing the disability is […]
Which of the following statements about the Social Security cost-of-living adjustment is (are) true? I. The amount of the adjustment is limited to a maximum of 2.5 percent annually. II. Increases are based on changes in the consumer price index. A) I only B) II only C) both I and II D) neither I nor […]
In addition to most persons over age 65, which of the following persons is (are) eligible for Medicare benefits? I. Persons under age 65 who have been entitled to Social Security disability benefits for at least 24 months II. Persons under 65 who need long-term kidney dialysis treatment or a kidney transplant A) I only […]
Shareholder wealth maximization means maximizing the price of the existing common stock. Indicate whether the statement is true or false ANSWER TRUE
Financial management deals with the maintenance and creation of economic value or wealth. Indicate whether the statement is true or false ANSWER TRUE
Which of the following statements about the medical insurance (Part B) portion of Medicare is (are) true? I. Participation in Part B of Medicare is voluntary. II. It is provided at no cost to anyone who is fully insured under Medicare. A) I only B) II only C) both I and II D) neither I […]
Lynn works for a state university. In addition to the university’s regular retirement plan, Lynn participates in another retirement savings plan. She elected to have $5,000 of her salary withheld and contributed to a tax-sheltered annuity with an insurer. The type of plan that Lynn established is called a A) SIMPLE plan. B) 403(b) plan. […]
Which of the following statements concerning defined benefit and defined contribution pension plans is (are) true? I. The employer bears the investment risk with a defined contribution plan. II. Defined benefit plans favor workers who enter the plan at older ages. A) I only B) II only C) both I and II D) neither I […]
