Worksheet content

When an employee has money deducted from his paycheck to deposit into his employer's retirement plan, the employee is contributing to his

• 401(k) plan.
• investment portfolio.
• insurance plan.
• savings account.

John, an insured driver, was in an automobile accident with another car. The accident was John's fault. The type of coverage that pays for the medical expenses of the person in the other car is

• collision physical damage.
• medical coverage.
• bodily injury liability.
• uninsured motorist.

Susan gives Marie her credit union debit card and personal identification number (PIN) so that Marie can withdraw $25. Marie withdrew $100 from Susan's account instead of the agreed $25. How can Susan get the $75 back?

• She can demand that the credit union reimburse her for Marie's unauthorized transaction.
• She can file a request with the Federal Reserve Bank and ask to be reimbursed for Marie's unauthorized transaction.
• She can ask Marie's bank to reimburse her for the unauthorized transaction.
• She cannot get her money back because she authorized Marie to use her ATM card and PIN.

A person's health insurance policy requires her to pay the first $500 of medical costs each year before the insurance company will start to pay any of her medical bills. This $500 requirement is called the

• co-insurance clause.
• premium payment.
• annual deductible.
• major medical benefit.

Investors willing to accept high risk are

• risk-averse.
• risk-neutral.
• risk-tolerant.
• preferred.

When a person uses his credit card and does not pay his balance in full each month, the person will

• pay more for the items he buys with the card as a result of monthly finance charges.
• have to pay a higher interest rate when he makes new purchases on his card.
• qualify for earning extra bonus points.
• see his credit score increase.

A person whose only income to pay family expenses is from his job, dies unexpectedly. He had no life insurance. His wife and two children will likely

• receive his income for five years.
• get disability from his employer.
• have money to cover living expenses from the federal government.
• suffer from the loss of his income reducing their standard of living.

When a corporation or government agency borrows money from an investor and pays interest and principal to that investor, it is raising money by selling a

• stock.
• savings account.
• bond.
• certificate of deposit.

Which of the following retirement plans allows an employer to match contributions that employees make?

• 401(k) plan.
• Roth Individual Retirement Account (Roth IRA).
• Defined benefit plan.
• Traditional Individual Retirement Account (Traditional IRA).

If a shareholder cannot attend the annual stockholder meeting, she can assign her common stock voting rights to someone else by signing and returning a

• proxy statement.
• rights statement.
• dividend statement.
• bank statement.