Personal Finance Review #1

Front

Which option represents investment income earned by an individual who holds shares in a company? Options: asset allocation, inflation rate, risk tolerance, dividends

Back

dividends

Tags

Domain 1 Earning Income

Front

A mortgage is secured loan since the house can be used as collateral.

Back

True

Tags

Managing Credit

Front

A car loan is an unsecured loan since the car cannot be used as collateral.

Back

False

Tags

Managing Credit

Front

Federal student loans will always accrue more interest than private loans.

Back

False

Tags

Managing Credit

Front

What type of account allows money for a set period at a fixed interest rate, but charges a penalty for early withdrawal? Options: Savings, Certificate of Deposit, Money Market, Checking

Back

Certificate of Deposit

Tags

Saving

Front

What type of retirement account has after-tax dollar contribution and offers tax free withdrawal?

Back

Roth IRA

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Domain 3 Saving

Front

When your policy has a high deductible, you'll pay lower premiums.

Back

True

Front

What is a deductible?

Back

A deductible is the out-of-pocket amount a policyholder pays before the insurance company starts paying.

Front

A premium is the amount you pay for your insurance policy.

Back

True

Front

The amount you pay after your insurance is called your deductible.

Back

False

Answer explanation

A deductible is the amount of money you pay for covered expenses before your insurance company starts paying.