Which of the following statements about the spendthrift clause is NOT correct?
A) It helps protect the death benefit proceeds from the beneficiary's creditors.
B) It gives the beneficiary the right to use the death benefit as collateral for a loan.
C) It states that the life policy proceeds will be paid directly to the beneficiary.
D) Once the beneficiary has received payments from the proceeds, the creditors can take steps to attach those payments."
Ans: B) It gives the beneficiary the right to use the death benefit as collateral for a loan.
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A real estate agent receives a $50 restaurant gift certificate from a mortgage broker as a token of appreciation for referring a home buyer to the mortgage broker. Which of the following laws was violated as a result of this transaction?
a. ECOA b. RESPA c. FCRA d. Fair Housing Act
Your new employer makes you an unusual salary offer. Choice A is to receive a $20,000 lump sum today and another $50,000 in one year. Choice B is to receive nothing today, and $80,000 in one year
You carefully consider what you have learned in your finance class and determine that the risk and uncertainty of this offer as well as the difficulty of having to find money for living expenses for one more year leads you to conclude that the appropriate interest rate at which to evaluate these offers is 40%. Based strictly on the results of your calculations, which offer should you accept and why? A) Choice A because the present value of $57,142.86 is greater than the PV of $55,714.29 for Choice B. B) Choice A because the present value of $70,000 is greater than the PV of $57,142.86 for Choice B. C) Choice B because the present value of $80,000 is greater than the PV of $70,000 for Choice A. D) Choice B because the present value of $57,142.86 is greater than the PV of $55,714.29 for Choice A.