Financial Literacy

Which of the following types of insurance assists in covering medical expenses associated with short-term illness and accidents?

• Disability insurance

• Health insurance

• Life insurance

• Retirement insurance

Which of the following investments is characterized by the following traits: • Insured by the FDIC or NCUA • Lowest interest rate of all investments • Number of withdrawals per month may be limited

• Money market

• Traditional savings account

• Exchange-traded fund (ETF)

• Certificate of deposit (CD)

Which of the following types of insurance provides income to people who depend on a wage earner after the wage earner dies?

• Automobile insurance

• Disability insurance

• Health insurance

• Life insurance

Which of the following investments is characterized by the following traits: • Investor loans money to a city, county government, or company • Money is repaid after a certain date, plus interest is paid • Generally considered a safe investment, although not insured by the FDIC

• Bonds

• Exchange-traded fund (ETF)

• Savings accounts

• Mutual funds

When one party to a contract does not do what the contract requires, the individual has committed a what of the contract?

• Breach

• Consideration

• Ratification

• Treaty

All of the following are advantages of bundling insurance EXCEPT what?

• Convenience

• Increases insurance options

• Less complicated

• Potential saving of money

The total money one gets to "take home" from a paycheck after taxes and deductions are taken out is known as what?

• Gross pay

• Federal income tax

• State income tax

• Net pay

Which of the following investments is characterized by the following traits: • Risky • Ownership in a corporation • Pays dividends • Potential for reward is high

• Stocks

• Bonds

• Commodities

• Real estate

When one is inspecting a banking or credit statement and discovers several charges they did not make, the individual is most likely a victim of what?

• High service fees

• Identity theft

• Preemptive payments

• Unethical sales practices

Using the simple interest formula, calculate the interest earned on $150 after one year at a 6% return rate.

• $90.00

• $0.09

• $9.00

• $4.00