Financial Planning Unit 3 Test

How does insurance help people to manage their financial risks?

• Insurance prevents bad things from happening to you.
• Insurance on something pays out money to help you replace or fix something that you lost or had damaged
• Insurance companies give full refunds to anyone that experiences a loss on something that is insured.  
• Insurance companies call and alert their customers before the person is about to do something foolish with their money.  

Getting the best deal on a purchase involves doing all of the following EXECPT:

• Having patience
• Being first in line for a new product
• Negotiating
• Shopping around to find the best deal

Having to do with a person's honesty and moral attributes

• Negotiate
• Walk-Away Power
• Cost-Benefit Analysis
• Integrity

Retail store where people can sell their items and the owner of the shop gets a percentage of the sale

• Estate Sale 
• Consignment Shop 
• Auction
• Good Will Shop

The ability to walk away from a purchase when negotiating 

• Cost-Benefit Analysis 
• Negotiate
• Foreclosure
• Walk-Away Power

The process of quantifying costs and benefits of a decision

• Cost-Benefit Analysis 
• Integrity
• Markup
• Discount Percentage

Which of the following is a NOT a recommended way to lower your car insurance premiums?

• Get good grades and take a Driver's Ed. course

• Drop your auto insurance all together

• Increase your deductible

• Shop around

You are involved in a two -car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance is called:

• Comprehensive

• Liability

• Collision

• Uninsured Motorist Protection

Provides money to pay for health care for illness, injury, or, in some cases, preventative care

• automobile insurance
• disability insurance
• health insurance
• personal insurance

A piece of ownership in a company, mutual fund or other investment.

• Bond
• Share
• IRA
• Portfolio