Future Smart: Your Financial Future (Module 6)

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, 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.

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 answers are correct

Which of the following statements about buying and selling stock is TRUE?

• A stock exchange is the physical place where stocks are traded.

• It is illegal to buy stocks online.

• Stock prices stay the same most of the time.

• In order to sell a stock, you must have at least 1,000 shares.

_______________ 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 covers any 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%