Which of these factors influences the cost of car insurance?

• Driving record of the car owner.

• Expertise of the car salesperson.

• Amount of money owed on the car.

• How often the car is serviced.

Most experts recommend having an emergency fund to cover at least:

• one to two months of living expenses.

• three to six months of living expenses.

• one to two years of living expenses.

• two to four years of living expenses.

Before buying a certificate of deposit (CD), a person needs to:

• be sure that funds can be withdrawn from the CD by writing a check.

• find out which bank offers the best interest rates on CDs.

• have a savings account in the bank which offers the CD.

• obtain an ATM card from the bank which offers the CD.

An important characteristic of a SMART financial goal is that the goal:

• has a specific time frame.

• is approved by a financial planner.

• is the same as for other people in the person's age group.

• can be achieved at no cost.

A blue chip stock is a share of a public company that has a reputation for:

• making innovative products and creating the latest technology

• operating profitably and having a long record of stable growth

• having a stock price that fluctuates

• hiring college graduates

A person's earning potential is generally based on:

• family size and values.

• skills and education.

• height and weight.

• religion and ethnicity.

The reason an employed person buys disability insurance is to be protected from the loss of income if the person:

• becomes unemployed for more than three months.

• needs to stay home to take care of a sick child.

• earns a salary that does not cover monthly fixed or variable expenses.

• is unable to work due to a serious illness or injury.

It is important to distinguish between needs and wants to:

• spend money wisely.

• avoid phishing.

• eliminate risk.

• ensure liquidity.

Which of the following is a true statement about term life insurance?

• It provides insurance during a person's entire life.

• It is insurance that has a cash value.

• It is insurance coverage on a person for a limited period of time.

• It is insurance coverage that includes health care.

Financial advisors distinguish between "good debt" and "bad debt." Generally, an example of "good debt" is a:

• unpaid balance on a credit card.

• vacation loan with a high interest rate.

• home mortgage.

• installment loan for jewelry.