Free Chartered Life Underwriter (CLU) I Questions and Answers

Question 1

What is the typical time it takes for an IPO to end if one is going to happen?

Accepted Answer

Four to six months

Answer

1 year

Answer

Six to twelve months

Answer

Two to four months

Question 2

If = 11, how much savings would a person making $50,000 a year need to maintain their quality of living after retirement?

Accepted Answer

4166.67

Answer

4166.66

Answer

4167.67

Answer

4167.66

Question 3

Will someone with an incurable illness not be eligible for work benefits?

Accepted Answer

No, ADA prevents exclusion from benefits

Answer

Yes, because there might be an unfair consumption of resources

Answer

No, it is a breach of the rights of the person

Answer

Yes, if the person is sick with the incurable disease before employment

Question 4

If = 2, how much savings would someone making $45,000 a year need to maintain their quality of life after retirement?

Accepted Answer

15,000

Answer

14,000

Answer

12,000

Answer

10,000

Question 5

In both consumption and saving. Define the PV to FV exchange rate ratio.

Accepted Answer

FV/PV

Answer

PVxFV

Answer

(PV+FV)/2

Answer

PV/FV

Question 6

What distinguishes a venture capital firm from a buy-out firm in particular?

Accepted Answer

Internal growth

Answer

Stable cash flow

Answer

Leverage at assets

Answer

High stakes

Question 7

Which of the aforementioned assertions regarding deferred annuities is accurate?

Accepted Answer

Income payments will begin further into the future

Answer

Income payments will begin in one payout interval

Answer

Income payments will begin once everything is settled

Answer

Income payments will begin immediately