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WorksheetsFin Lit - Final Exam Review (Spring 2020)
Total questions: 50
Worksheet time: 25mins
What role does insurance play in financial planning?
It guarantees that income and assets are protected
It helps build and maintain one's credit score
It helps cover day-to-day expenses
It grows in value and appreciates over time
The out of pocket cost to the insured when a loss occurs is called...
Premium
Deductible
What factors impact the cost of your auto insurance premium?
Deductible amount
The vehicle you are insuring
Your credit score
Your income
Your health insurance copay is
Amount paid out of pocket before your insurance coverage
Paid by the insurer
Applied on an annual basis
A fixed amount of money you pay each time you use your plan
Manufacturers and makers of goods and services for sale are called:
Consumers
Producers
Agencies
Economists
The quantity of goods and services that will be provided is called:
Utility
Economy
Supply
Demand
Advertising a car at a really low price and then attempting to sell other services is called:
Bait and switch
Low-balling
Fake sales
Referral sales
The agency with information about local businesses is:
Consumer Reports
The Federal Bureau of Investigation
The Better Business Bureau
The police department
Which party files a lawsuit?
Plantiff
Defendant
Sheriff
Bailiff
What of the following is not a method of alternate dispute resolution?
Mediation
Binding arbitration
Voluntary arbitration
Small claims court
The person named in a life insurance policy to receive benefits is called the _____________.
Actuary
Agent
Insured
Beneficiary
A request for payment for a loss is called a ____________.
Coverage
Deductible
Claim
Benefit
Chances of loss involving income and standard of living are called _____________.
Personal risks
Property risks
Liability risks
Insurance risks
Which of the following is an example of a property risk?
Inability to work
Illness or injury
Damage to car or home
Being laid off from a job
What is the first step in risk management?
Assess risks
Handle risks
Identify risks
Avoid risks
What is one way to reduce insurance premiums?
Increase deductibles
Decrease deductibles
Buy an individual rather than a group policy
Spread insurance policies among many companies
Which of the following is an attractive nuisance
A car
A dog house
A swing
A swimming pool
An adjustable rate mortgage, the interest rate changes in response to the movement of ________ as a whole.
The political situation
The economy
Property values
Property availability
The difference between the market value of property and the amount owed on it is called ______________.
Closing cost
Acceptance
Equity
Adjustable rate
Which of the following is a finance charge equal to one percent of the loan amount?
Lien
Closing cost
Mortgage
Point
The fee paid by a policyholder is called a ________________ .
Policy
Deductible
Premium
Face Amount
Which coverage pays for damage to your car when you are at fault?
Comprehensive
Collision
Personal injury protection
Liability
Which of these is true about no-fault insurance?
It speeds claims.
It reduces insurance premiums.
It lowers costs of repairs.
It increases lawsuits.
What exists when there is only one producer or supplier of a product?
Monopoly
Price-fixing
Utility
Recession
Which of the following is covered by the Consumer Bill of Rights:
The right to be informed about hazardous products
The right to buy inexpensive medicines
The right to purchase items at the lowest cost
The right to receive free health care
When should retirement planning begin?
At retirement
At financial maturity
As early as posisible
At the time an employee is vested
Disputes between private citizens, groups, or companies are heard first in which court?
Appellate court
Civil court
Criminal court
The U.S. Supreme Court
Which risk is caused by business declines?
Political
Speculative
Market
Inflation
What is a technique for estimating the amount of time to double your investment?
Speculation
Rule of 72
Risk
Inflation
What market is characterized by low stock prices and pessimistic outlook?
Bull market
Bear market
Securities exchange
Auction market
Items such as coins and antiques are investments known as:
Commodities
Futures
Collectibles
Precious metals
What type of insurance is a major concern for older people?
Life
Auto
Health
Property
To spread the risk of an investment is known as:
Liquidate
Diversify
Buy the same stock
Sell all your stock
Municipal bonds are:
Tax exempt
Tax deferred
Convertible
Not rated
What has an effect on stock value?
The company
Interest rates
The market
All of the above
The willingness and ability of consumers to purchase goods and services is called:
Supply
Demand
Utility
Economics
The likelihood of a loss is increased by a __________.
risk
peril
hazard
loss
With _____ risk, there is a chance of loss with no chance of gain.
speculative
insurable
pure
market
Taking measures to lessen the frequency or severity of losses that may occur is called:
risk avoidance
risk reduction
risk assumption
insuring
What is a disadvantage of home ownership?
tax savings
increase in equity
privacy
maintenance and repairs
Which of these is considered income protection insurance?
Term
Cash value
Medicare
Disability
Beginning investments should be
conservative, high risk
conservative, low risk
permanent, high risk
temporary, low risk
A large, professionally managed group of diversified investments is the _________.
Roth IRA
Mutual fund
IRA
Common Stock
Which of the following is not an example of a long-term investing technique?
Buy and hold
Dollar-cost averaging
Direct investment
Short selling
How are stocks of well-known companies classified?
Growth
Blue chip
Cyclical
Defensive
Which form is used to report an employees earnings and taxes paid in a year?
W-2
W-4
I-9
1040
fixed rate of pay for week, month, or year
wages
commission
tips
salary
money leftover to spend after paying taxes
disposable income
unearned income
earned income
gross income
