Banking Final Review - 20 ?'s

Front

Which would be considered the highest risk investment type? Options: Stock, Mutual Fund, Bond, Money Market Account

Back

Stock

Front

The relationship between risk and return can be stated as

Back

Higher risk indicates higher return

Front

A savings account is useful for all of the following purposes EXCEPT... Building an emergency fund, Funding a future vacation, Saving for a new car

Back

Putting aside money for retirement

Front

Why is it important to start investing as soon as possible?

Back

You have more time for your money to compound

Front

Why is diversification a recommended investment strategy?

Back

Diversifying your portfolio helps reduce risk.

Front

If your apartment catches on fire and you have renters insurance, the insurance company will likely pay all of these EXCEPT...

Back

The cost of replacing damaged sections of the roof and any broken windows

Front

When discussing homeowners or renters insurance, what is a home inventory?

Back

A list of all of your possessions inside your home that you create ahead of time in case you ever need to file a claim.

Front

What is one way that homeowners insurance differs from renters insurance?

Back

Homeowners insurance will cover your physical structure (house, condo, etc.), but renters insurance does not.

Front

Why is Amelia's logic flawed regarding renters insurance?

Back

In the case of a major burglary or fire, it can cost thousands of dollars to replace all the stolen or damaged items with new ones.

Front

Why is the declarations page of a homeowners insurance policy so important?

Back

It states all of your coverages bundles, limits, premiums, and deductibles in one location.