FL Exam 40 Questions

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 being insured by the FDIC or NCUA, having the lowest interest rate of all investments, and possibly limiting the number of withdrawals per month?

• 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 being risky, involving ownership in a corporation, paying dividends, and having a high potential for reward?

• 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