W!SE Review #2

Banks can use money from depositors to:

• make their services and products attractive for new depositors

• pay for employee special projects

• give loans to consumers and businesses

• pay expenses for the Federal Reserve System

When deciding between two job offers with similar salaries, it is generally most important to consider the:

• size of the organization

• company benefits and retirement plan

• weekly work hours and number of employees

• reputation of the organization

Consumers who file for bankruptcy are still responsible for:

• Mortgage loans

• Tax claims and student loans

• Car loans

• Credit card balances

Mutual funds are:

• An investment portfolio managed by the investor

• An investment that holds a wide range of different investment instruments, providing diversification

• Usually less risky than investing in a money market

• Guaranteed to increase in value

Banks use savings account deposits to:

• pay interest to checking account depositors

• pay bonuses to executives

• give loans to consumers and businesses

• help out different charities in the area

Why is term life insurance usually the least expensive type of life insurance?

• The policy only pays a death benefit

• The policy builds a cash value

• The policy provides coverage for a lifetime

• The policy is available to all consumers

Carmen sold her stock in ABC Company for a higher price per share than she bought it for. She realized a:

• Capital gain

• Capital loss

• Capital surplus

• Dividend

Which of the following insurance covers vehicles?

• Mortgage

• Racing

• Automobile

• Life

The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are:

• Profits from business

• Dividends and interest

• Rents

• Salaries, wages, and tips

You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for the loss. The $500 the insurance did not pay is a result of your policy having a:

• Co-insurance clause

• Deductible

• Hazard clause

• Premium