7.05 Test

Which is the first step of a cost-benefit analysis?

• Determine what the options are.

• Calculate the amount of benefits for each option.

• Determine the costs of the decision.

Which is not a step of a cost-benefit analysis?

• determining costs

• paying taxes

• weighing benefits against costs

• establishing benefits

A lease is an agreement that renters make with whom?

• bank

• parents

• stockbroker

• landlord

Which of the following describes a lease?

• utility

• contract

• payment

• insurance

Which kind of insurance protects from the costs of an injury that causes you to lose wages?

• auto insurance

• homeowner's insurance

• health insurance

• disability insurance

Which kind of insurance protects from the costs of an illness that involves a trip to the doctor?

• auto insurance

• disability insurance

• health insurance

• homeowner's insurance

Which kind of insurance protects from the costs of a fire in your house that damages your personal possessions?

• auto insurance

• disability insurance

• homeowner's insurance

• health insurance

What kind of insurance provides replacement value for personal possessions?

• renter's insurance

• auto insurance

• disability insurance

• health insurance

In case of damage to your house and its contents: homeowners insurance pays for the cost of rebuilding your house and buying all new replacement items inside.

• true

• false

Which is not generally a feature of a checking account?

• includes a debit card

• provides convenience

• pays high interest rate

• offers security