Review 7

Which factor would most likely lead to an increase in the interest rate on a person's credit card?

• number of purchases
• late payments
• number of cash advances
• total amount charged

A bank certificate of deposit is a:

• savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals
• Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty
• Cash deposit in a savings account that earns interest
• Certificate of deposit that is issued for half the face value

The National Credit Union Administration (NCUA) insures accounts in:

• Credit unions
• Savings banks
• Brokerage firms
• Commercial banks

If a business wants to raise capital but not create debt, it can:

• Issue Common Stock
• Float a bond issue
• Borrow money from a commercial bank
• Borrow money from the governmnet

A person buys insurance to:

• start a savings account

• to assure they will get a brand new car each time they make a claim

• protect themselves against financial hardship

• to insure their neighbors in case of a fire

Using someone else's money, promising to repay at a future date, and paying a fee for use of the money, is the definition for:

• credit
• taxation
• investing 
• interest

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

• hazard clause
• premium
• deductible
• co-insurance clause

The only type of life insurance that does not develop a cash value is:

• universal life
• term life insurance
• variable universal life insurance
• whole life insurance

Which of the following is the most basic type of automobile insurance

• collision
• liability
• comprehensive
• hazard

The federal agency that regulates the securities industry is the:

• Federal Trade Commission
• Securities and Exchange Commission
• Federal Reserve
• Department of Commerce