FutureSmart Mod6

True or False: Even if it costs $150 per month, having health insurance can save money over time.

• True

• False

If a person has liability insurance, what would they be covered for?

• Repairing damage to other cars if they got into an accident that was their fault

• Repairing damage to their own car if they got into an accident that was their fault

• Repairing damage to their car that was caused by storms or theft

• Repairing damage to their car that was caused by another driver who does not have car insurance.

What is a premium?

• The amount you are personally required to pay before your insurance covers the cost.

• A fixed fee you pay for specific medical services, like a visit to the doctor’s office or the Emergency Room.

• The most you have to pay for health care in a full year.

• The amount you pay the insurance company for coverage.

Jason is responsible for paying $500 annually before his insurance covers costs. The $500 Jason must pay is best described as:

• Annual out-of-pocket maximum

• Copay

• Deductible

• Premium

_______ is small piece of ownership in a company.

• Stock

• Bond

• Mutual fund

• Deposit

______ are interest-earning loans to a company or government for a set amount of time. They are considered low-risk investments.

• Bonds

• Mutual funds

• Stocks

• Deposits

Someone is retiring next year. What would be an appropriate amount of risk to take with their investments?

• Highest risk, highest growth

• Medium risk, medium growth

• Lower risk, lower growth

• None of the above

When deciding how to invest your money, which of the following is least important to know?

• When you will need to use the money

• Whether or not deposits can be made online

• The expected rate of return on your investment

• How risky the investment is

What might be one reason why a stock becomes more valuable over time?

• The industry is growing

• The company is well-managed

• There is a lot of demand for the product

• All of the above

True or False: Over time, the rate of return on most stocks is higher than 5%?

• True

• False