Your Financial Future

If Chris has car liability insurance, what damage would he be covered for?

• Repairing damage to other cars if he got into an accident that was his fault

• Repairing damage to his own car if he got into an accident that was his fault

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

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

What is a premium?

• The amount you pay the insurance company for coverage.

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

• A fixed fee you pay for specific medical services.

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

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

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

• Whether or not deposits can be made online

• When you will need to use the money

• The expect rate of return to use the money

• How risky the investment is

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

• Stocks

• Bonds

• Mutual funds

• Deposits

In addition to paying $100 per month for health insurance, Janine is responsible for paying her first $500 medical bills every year before her insurance costs. The $500 Janine must pay is called the:

• Premium

• Deductible

• Copay

• Annual out-of-pocket maximum

A ______ is a small piece of ownership in a company.

• Stock

• Bond

• Mutual Fund

• Derivative

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

• No risk. Just savings accounts

Over time the average rate of return on stocks is:

• Less than 2%

• 3%

• 4%

• More than 5%

Which of the following statements about health insurance is FALSE?

• People use insurance to reduce their risk of having very large medical expenses.

• Insurance plans with different premiums and deductibles let you decide how much financial loss you are willing to risk.

• Paying for health insurance is always cheaper than paying for your own medical expenses.

• None of the above.