Financial Literacy Quiz

Which of the following terms describes the scope of protection provided under an insurance policy?

• RISK

• COVERAGE

• DEDUCTIBLE

• PREMIUM

Which of the following terms describes the FEE the policyholder pays to the insurance company in order to be insured for a defined period of time?

• Deductible

• Coverage

• Premium

• Policy

Which of the following is NOT an important factor when setting insurance goals?

• AGE

• LIFESTYLE

• INCOME

• PERSONALITY

Which of the following is NOT an important factor when choosing an insurance company?

• Licensing

• Location

• Financial solidity

• Price

Which of the following terms describes the portion of a claim the policyholder must pay before the insurance company provides the benefits?

• Deductible

• Coverage

• Premium

• Policy

Because the family life cycle changes, goals require which of the following?

• Constant updating

• Priorities

• Long term target dates

• Lots of thought

A budget helps prevent debt by detailing which of the following?

• Listing expenses

• Creating new income

• Showing current debts

• Identifying shortages before they happen

After creating his budget, John realized his expenses exceed his income. To resolve this issue he can do which of the following?

• Go on a shopping spree

• Invest more in the stock market

• Work fewer hours

• Eat out less frequently

Budgeting finances requires calculating __________ and __________.

• Income; expenses

• Inflation; taxes

• Investments; savings

• Utility; opportunity cost

Budgets assist in reorganizing finances to reduce ________ or increase ________.

• Problems; happiness

• Funds; expenses

• Consistency; originality

• Debt; savings