6 PFL FINAL

Mr. Thomas Cruz bought a vacation cottage on lakefront property. What type of investment did Mr. Cruz purchase?

• Ownership

• Securities

• Stock

• Escrow

Insurance is essentially a way to __________ risk.

• prevent

• transfer

• avoid

• increase

Julie's grandparents have offered to give her $1,000 at either the beginning or end of college. Why should she take the gift at the beginning of college?

•  Inflation will increase the value over time.

• She can start earning interest sooner.

• She will pay fewer taxes before she begins college.

• She shouldn't; she should wait until after college.

Alexander's savings account earns 1.50% in interest. Using the Rule of 72, how many years would it take for Alexander's savings to double?

• 108 years

• 36 years

• 48 years

• 15 years

Before you invest, you should

• graduate college.

•  own a car.

• be at least 25 years old.

• conduct thorough research.

What is the purpose of using diversification strategies?

• To decrease equity

• To manage price

• To reduce risk

• To control debt

An individual who is interested in a specific profession might consider obtaining job-related experience by

• performing volunteer work.

• conducting online research.

• taking a class.

• selecting a mentor.

One reason why many workers begin their careers in entry-level jobs is because these jobs 

•  provide no room for advancement.

• require little or no experience.    

•  offer very low compensation.

• are limited to small businesses.

Edward is a college student earning his business degree. In the evenings and on weekends, he bags groceries at a local store to earn money for school. “Grocery bagger” is Edward's

• goal

• job

• career

• long-term plan

Which of the following is a reason that you might file an automobile insurance claim

• You got a flat tire. 

• Your car battery died.

• You left your car doors unlocked, and someone stole your phone.

• You ran a red light and hit another vehicle.