Wise Financial Literacy Test Prep (Part 4 of 4)

Front

The maximum amount of money a person can borrow is called a credit

Back

line.

Front

Which of the following can help a person lower her personal risk of loss? A. Insurance. B. A will. C. Mutual funds. D. Home ownership.

Back

Insurance.

Front

If a car was damaged in a flood, which type of car insurance would typically cover the damage to the car?

Back

Comprehensive.

Front

How should a person decide how much coverage she needs when selecting renters insurance? Options: A. Do online research to find out the minimum coverage requirement. B. Ask salespeople from several different insurance companies. C. Determine the dollar value of personal property to be covered by insurance. D. The amount of insurance is the same for everyone.

Back

Determine the dollar value of personal property to be covered by insurance.

Front

Car insurance is more expensive for teenage males than teenage females because studies have shown that

Back

male teenagers have a greater number of accidents than female teenagers.

Front

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:

Back

replacement value.

Front

If a driver receives several traffic tickets, the cost of the car insurance will probably

Back

increase.

Front

Money that a person pays to an insurance company for a policy is called a

Back

premium.

Front

Before a person can receive money to cover the damage from a car accident, he must: A.   file a claim with his insurance company., B.  increase his insurance coverage., C.   have a witness who will testify for him., D.  notify the lender who gave him a car loan.

Back

file a claim with his insurance company.

Front

What is the key word for insurance companies when establishing the cost for a policy? Options: A. Diversify, B. Deductible, C. Risk, D. Credit.

Back

Risk.