Q:1-A _____ allows the transferred trust property to be treated as if it were a gift if a present interest to a child.
Mark one answer:
Section 2503(c) Minor's Trust
Section 3200 Minor's Trust
Section 3211 Trust
Section 542 Trust

Q:6-Your client wants to accomplish the following: - Provide inflation protected income stream for parents. - Reduce income taxes. - Fulfill charitable intent. - Provide some control over the assets. Which of the following trust or funds would accomplish your client's goals?
Mark one answer:
A charitable lead unitrust.
A charitable remainder annuity trust.
A charitable pooled income fund.
A charitable remainder unitrust.

Q:7-While John is working on his garage roof, he slips, falls off the roof, and lands on the driveway next to the car. John broke his arm in the fall. He should seek to collect and will be successful in doing so from which of his insurance policies?
Mark one answer:
Coverage F, medical payment insurance on his homeowners.
Medical pay on his auto insurance.
His personal health insurance policy.
His extended coverage on his life insurance policy.

Q:8-Your client, John Kent, purchased a limited payment whole life policy 15 years ago. He would like to stop paying the premiums on his policy, but continues to need the same amount of insurance. If he did so, which one of the following is a non-forfeiture option he could use?
Mark one answer:
Reduced paid-up insurance.
Extended term insurance.
Installments for a fixed period.
One-year term.

Q:9-The optimum portfolio is said to occur at the point of tangency of which of the following two measures?
Mark one answer:
Indifference curve and efficient frontier.
Standard deviation and median expected return.
Beta coefficient and portfolio data.
Covariance and correlation coefficient.

Q:10-You purchase one call contract and pay a $5 premium that allows you to buy the stock at $50. The stock is currently trading at $54. What is the intrinsic value of the situation you’re in?
Mark one answer:
-$4
$0
$2
$4