Wise Financial Literacy Test Prep (Part 4 of 4)

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

• A.   history.
• B.  rating.  
• C.   report.
• D.  line.

77. 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.

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

• A.   Universal.
• B.  Term.
• C.   Disability.
• D.  Comprehensive.

79. How should a person decide how much coverage she needs when selecting renters insurance?

• 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.

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

• A.   male teenagers have a greater number of accidents than female teenagers.
• B.   more male teenagers take driver education classes than female teenagers.
• C.   female teenagers do not drive often.
• D.  female teenagers frequently own their cars.
  

81. 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.

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

• A.   increase.
• B.  decrease.
• C.   stay the same.
• D.  be billed monthly.

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

• A.   debt.
• B.  premium.
• C.   deductible.
• D.  liability.

84. 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.

85. What is the key word for insurance companies when establishing the cost for a policy?

• A.   Diversify.
• B.  Deductible.
• C.   Risk.
• D.  Credit.