Personal Finance Final Review

Front

What role does insurance play in financial planning?

Back

It guarantees that income and assets are protected

Front

The out of pocket cost to the insured when a loss occurs is called...

Back

Deductible

Front

A stone hits your windshield. Which type of coverage would likely cover this expense?

Back

Comprehensive

Front

Your health insurance copay is

Back

A fixed amount of money you pay each time you use your plan

Front

Which of the following may NOT always appear on your paycheck stub? Gross Pay, Net Pay, Your Role/Title, Local Tax

Back

Your Role/Title

Front

What is a deductible?

Back

The amount you pay before your insurance begins to pay.

Front

How does the 50/30/20 rule of thumb for budgeting allocate your income?

Back

50% Needs, 30% Wants, 20% Savings & Debt Repayment

Front

What is the mathematical formula that you would use to describe the financial activity on a bank statement?

Back

Ending Balance = Previous Balance + Deposits - Withdrawals - Fees

Front

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

Back

Stock

Front

A diversified portfolio is desirable because

Back

It decreases risk.