FPF Unit 3 Review

What type of auto insurance coverages pays the medical expenses of another driver that you hit?

• comprehensive

• liability

• collision

• uninsured motorist

What type of insurance do you NOT need as a young adult?

• health insurance

• identity theft protection

• life insurance

• auto insurance

What is the purpose of insurance?

• develop a savings plan

• transfer financial risk

• provide an investment opportunity

• all of the answers are correct

Which of the following is a good investment option?

• viaticals

• gold

• mutual funds

• rare antiques

Which statement about liquidity is true?

• The more liquid, the more return

• The more liquid, the less return

• The less liquid, the less return

• The more liquid, the higher the risk

Which of the following is typically NOT a good place to find a deal?

• online auctions (eBay, craigslist, etc.)

• the mall

• yard sales

• consignment shops

Which of the following is NOT a reason why using cash is a good bargaining tool?

• cash is emotional

• cash is visual

• cash has immediacy

• cash is hard to carry around

Long-term investments, properly diversified, include the following mutual funds:

• Growth, balanced, international, bond

• Growth, growth and income, international, aggressive growth

• International, bond, aggressive growth, growth

• Growth, growth and income, bond, aggressive growth

You own stock in a company that decides to issue a portion of its earnings to its shareholders. You can expect to receive a(n):

• dividend

• investment

• buy-out

• yield

Savings accounts and money-market accounts are most appropriate for:

• investing for retirement

• earning a high rate of return

• nothing, they should be avoided since they carry high risk

• short term saving and emergency funds