Managing your Money, Ch. 12

You always earn a greater return by keeping your money in a savings account than by investing in stocks.

• true

• false

If you have a deductible on your insurance policy, you do not have to pay anything before the insurance company begins to cover your costs.

• true

• false

What is the primary reason that corporate investors purhcase shares of stock?

• to have a say in how the company is run

• to earn a return

• to someday own the company

• to have a seat on the board

Which of the following is a type of time deposit?

• savings account

• checking account

• money market account

• certificate of deposit

A financial planner provides investment advice for a fee.

• True

• False

There is often a limit to the total amount a health insurance company will pay over an insured person's life span

• True

• False

Investing by depositing money into a banking account involves a high degree of risk.

• True

• False

Every person should have medical insurance.

• True

• False

Which of the following considerations about keeping your savings at home are true?

• You don't earn a return

• The money is safer at home than in a bank

• There is protection against inflation

• You can't get to your money easily

This binds the consumer to pay a premium in exchange for an insurance company's promise to pay claims for any insured loss up to a maximum amount covered by this agreement.

• annual percentage agreement

• corporate stock exchange

• insurance policy

• checking fee