Insurance
Two types of life insurance policies are:
A. Valuable and Indemnified
B. General and Fixed Rate
C. Annual and Tax Exempt
D. Term and Whole Life
D. Term and Whole Life
Carrying a balance on a credit card is risky.
True or False
True, a balance can lead to credit card debt.
What's the definition of interest?
A. Money earned on savings accounts and other funds.
B. A strategy to earn more on your money then the rate of inflation.
C. The capability to withdraw money at any time without penalty.
A. Money earned on savings and other funds.
What does IRA stand for?
Individual Retirement Account
Buying a single company stock usually provides a safer return than a stock mutual fund.
True or False
False
Money that a person pays to an insurance company for a policy is called:
A. Debt
B. Deductible
C. Premium
D. Liability
C. Premium
What is a demand deposit account at a bank on which checks are drawn?
A. Savings Account
B. Checking Account
C. Debit Account
D. Credit Account
B. Checking Account
Define Compound Interest
Interest earned on the principle and previously earned interest.
What is financial aid?
Money received from an outside source to help pay for education.
Which of the following financial products has the highest risk?
A. Checking Accounts
B. Certificates of Deposit (CDs)
C. Stocks
D. Bonds
C. Stocks
A person had an apple computer that was destroyed in a fire. She was able to buy a new apple computer because her insurance policy had the following benefit:
A. Actual Cash Value
B. Replacement Value
C. Limited Risk
D. Unlimited Claim
B. Replacement Value
What affects credit score the most?
Payment history
Suppose you have $100 in a savings account, and the interest rate was 2% per year. After 5 years, how much would be in your account if you left the money to grow?
A. More than $102
B. Exactly $102
C. Less than $102
A. More than $102
What is the average annual rate of inflation for college tuition around the country?
A. 2%
B. 8%
C. 15%
D. 57%
B. 8%
If you purchase a bond and interest rates rise, what will happen to the price of the bond?
A. Rise
B. Fall
C. Stay the same
B. Fall
Is having multiple insurance claims good or bad?
Bad, it puts you at risk of getting non-renewed by your carrier.
How long does negative information stay on a credit report?
A. 2-5 years
B. 7-10 years
C. 25-37 years
D. Never
B. 7-10 years
Normally 7, but if you've filed for bankruptcy 10 years.
What does collateral do?
Property that can be used as security for a loan.
How much will the typical married couple retiring at age 65 spend on out-of-pocket costs for health care throughout retirement?
A. $50,000
B. $100,000
C. $157,000
D. $266,000
D. $266,000
What is this describing:
The investor holds legal title to a property and has control over management decisions.
Direct investing
What claims are covered by comprehensive insurance?
Vandalism, theft, fire, and deer.
What is a credit score?
A three digit number calculated from your credit report and is one factor used by lenders to determine your creditworthiness for mortgage, loan, or credit.
Define personal loan.
Money borrowed for personal reason.
Describe a 401(k) plan.
A tax-deferred retirement plan for employees offered by businesses that operate for profit.
What's the definition of a bond?
A debit instrument that is issued by a corporation or government.