MoneySkill Mania 2

When you buy a consumer durable good, such as a new refrigerator, and the person making the sale keeps trying to sell you an extended warranty on the product, what does that tell you?

• It is never a good idea to buy an extended warranty

• It is always a good idea to buy an extended warranty

• The store is probably making a big profit on the extended warranty because it costs much more than the estimated costs of repairs

• The salesperson is always looking out for the benefit of the customer

Lauren has a $200 annual (calendar year) deductible on her health insurance plan. By the end of 2017, she had paid $175 in medical expenses. On January 4, 2018 she went to the doctor for the first time that year and was charged $60 for an office visit. How much of that must she pay for herself?

• $100

• None

• $25

• $60

Bill quit a job working 20 hours per week at a Subway sandwich shop. He now makes his own sandwiches in his college dorm room that he sells to hungry students. If he had been paid $8 per hour at Subway and now works the same 20 hours per week but sells his sandwiches for $300 per week and pays only $100 per week for the supplies, how much economic profit does he make?

• $80 per week

• $300 per week

• $20 per week

• $40 per week

Which of the following types of loans is considered to be an "investment in your human capital?"

• Credit Card charges

• Auto Loan

• Student loan

• Mortgage loan

Mike has saved $6,000 for his college expenses by working part-time. He plans to start college next year and needs all of the money he saved. Which of the following is the safest place for his college money.

• Locked in his closet at home

• Corporate bonds

• A bank savings account

• Stocks

What is the primary purpose of life insurance?

• To pay back our parents for the money they spent on us if we die

• To help maintain the standard of living of those who depend on our income, such as your spouse and children

• To pay us an income if we are injured and can't work

• To help save money for old age

As soon as a new car leaves the dealership, its value decreases and is considered “used.” This is due to what?

• Use tax

• amortization

• depreciation

• fianance charges

This company was valued at $47 billion and on track for an IPO in 2019 before falling at the finish line and shelving its plans to go public indefinitely? (Current Event)

• Uber

• Airbnb

• WeWork

• Peloton

Using the "Rule of 72," if you invested $2,500 at 9% interest, how many years would it take before your investment was worth $5,000?

• 12

• 9

• 8

• 6

Why is group insurance generally less expensive than policies sold by insurance agents?

• Groups make higher profits

• It is worse insurance

• Selling costs are lower

• It is the law