Which of the Following Is NOT Important When Buying Life

question 81

Multiple Choice

Which of the following is NOT important when buying life insurance?

• A) Buying from a financially strong company
• B) Buying from professionally qualified representatives
• C) Ignoring the reputations of local agencies
• D) Working with a representative who will help you select the proper kind of protection within your financial boundaries
• E) Asking family or friends for recommendations to choose an insurance company

---

Definitions:

Short Selling

The practice of selling securities or other financial instruments that are not currently owned, and subsequently repurchasing them at a lower price.

Market Neutral

An investment strategy that seeks to avoid some forms of market risk by taking offsetting positions in different securities, aiming for a net market exposure of zero.

Government Regulation

The act of controlling business behavior through a set of rules or laws set forth by the government to achieve outcomes that might not be achieved through free markets.

Incentive Fee

An incentive fee is a fee charged by a fund manager based on the fund's performance, encouraging the manager to achieve superior returns.