Consumer Education - Final Exam Review

Companies are now required to offer private health insurance plans to employees. *

• True

• False

Comprehensive automobile insurance is required when you finance a car.

• True

• False

House insurance will help cover the cost of fixing damage to a house caused natural disasters.

• True

• False

It is wise to get multiple quotes for any type of insurance to compare coverage and cost.

• True

• False

The fist number of liability coverage (50/100/25) indicates that what is insured for $50,000?

• Bodily injury for all the people in an accident that involves at least four people.

• Property damage for the person at fault

• Bodily damage for a single person in an accident that is not at fault

• Property damage for the person not at fault in an accident

Comprehensive insurance covers what kind of damage to an automobile?

• Only repairs needed due to a collision with another automobile

• Damage caused due to a collision with an animal

• Damage caused by a tree that falls on the car

• Only b & c

• None of the above

Which of the three types of savings accounts requires you to agree to the money being deposited for a specified period of time?

• Regular savings

• Money market account

• Certificate of deposit

• Mutual funds

Which of the three types of savings accounts typically requires you to maintain a minimum balance?

• Regular savings

• Money market account

• Certificate of deposit

• Mutual funds

9- Compound interest allows you to______________?

• Earn interest on your original deposit only

• Pay interest for borrowing money

• Earn interest on the original deposit plus interest earned

• None of the above

What is the first basic principle of investing?

• Wait to invest until after college

• Begin investing now

• Don’t invest – it is too risky

• Always invest for the short term