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Question 6
Question text
Select one:
a. the company matched the employee’s contributions in the 401(k).
b. the investor paid no annual tax on the 401(k).
c. the investor didn’t have to take the money out of the 401(k) until retirement.
d. all interest earned on the 401(k) was tax-free forever.
Question 7
Question text
Select one:
a. Japan and Italy
b. Germany and Japan
c. France and Germany
d. France and Italy
Question 8
Question text
Select one:
a. directly from savers
b. indirectly from savers through financial intermediaries
c. directly from savers and indirectly through financial intermediaries
d. by generating financial assets
Question 9
Question text
A market where existing financial assets can be resold to new owners is called a
Select one:
a. primary market.
b. money market.
c. secondary market.
d. capital market.
Question 10
Question text
A nonbank financial institution set up to provide financial protection for survivors of the insured
is the
Select one:
a. real estate investment trust.
b. pension fund.
c. finance company.
d. life insurance company.
Solution
Note:
Graph as mentioned in some of the questions are not visible / available, also to me. But other
questions can be answered where graphs are not needed or required.
10.
Correct Answer:
d. life insurance company.
Explanation:
A life insurance company is the non-banking financial institution that pays a lump sum amount
to survivors of the insured person after his / her unfortunate demise.
09.
c. secondary market
Explanation:
Secondary market is that segment of financial market where already issued or existing financial
assets or instruments are traded among investors. Here, financial assets can be bought and sold
among investors.
08.
c. directly from savers and indirectly through financial intermediaries
Explanation:
Answer of this question requires chart but it is not available in the question but on the basis of
circular flow of income, government and business can borrow directly from savers through
bonds, commercial papers and indirectly from financial intermediaries through loans that is
issued from the deposits made by savers.
07.
Here, answer is purely based on graph that is not visible so it can not be answered.
06.
b. the investor paid no annual tax on the 401(k)Explanation:
Explanation:
contribution made in 401 (K) is deductible pre tax. But other are taxed first then invested.

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Question 6Question textSelect onea. the company matched the e.pdf

  • 1. Question 6 Question text Select one: a. the company matched the employee’s contributions in the 401(k). b. the investor paid no annual tax on the 401(k). c. the investor didn’t have to take the money out of the 401(k) until retirement. d. all interest earned on the 401(k) was tax-free forever. Question 7 Question text Select one: a. Japan and Italy b. Germany and Japan c. France and Germany d. France and Italy Question 8 Question text Select one: a. directly from savers b. indirectly from savers through financial intermediaries c. directly from savers and indirectly through financial intermediaries d. by generating financial assets Question 9 Question text A market where existing financial assets can be resold to new owners is called a Select one: a. primary market. b. money market. c. secondary market. d. capital market. Question 10 Question text A nonbank financial institution set up to provide financial protection for survivors of the insured is the Select one: a. real estate investment trust.
  • 2. b. pension fund. c. finance company. d. life insurance company. Solution Note: Graph as mentioned in some of the questions are not visible / available, also to me. But other questions can be answered where graphs are not needed or required. 10. Correct Answer: d. life insurance company. Explanation: A life insurance company is the non-banking financial institution that pays a lump sum amount to survivors of the insured person after his / her unfortunate demise. 09. c. secondary market Explanation: Secondary market is that segment of financial market where already issued or existing financial assets or instruments are traded among investors. Here, financial assets can be bought and sold among investors. 08. c. directly from savers and indirectly through financial intermediaries Explanation: Answer of this question requires chart but it is not available in the question but on the basis of circular flow of income, government and business can borrow directly from savers through bonds, commercial papers and indirectly from financial intermediaries through loans that is issued from the deposits made by savers. 07. Here, answer is purely based on graph that is not visible so it can not be answered. 06. b. the investor paid no annual tax on the 401(k)Explanation: Explanation: contribution made in 401 (K) is deductible pre tax. But other are taxed first then invested.