Series 51: Exercise

Taken from our Series 51 Online Guide

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Exercise

Match each kind of educational savings instrument to its description.

A. CESA

B. 529 savings plan

C. Prepaid tuition plan

D. UGMA/UTMA

E. Educational savings bond

1. _____ This instrument allows earnings to grow tax-free and can be used to pay for educational expenses for primary through graduate school education.

2. _____ Setting up this type of instrument allows the investor to avoid inflation risk by purchasing credits to pay for education expenses in today’s dollars.

3. _____ These instruments allow

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