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WorksheetsUnit 2 Review
Total questions: 20
Worksheet time: 10mins
The Rule of 72 provides a quick formula for computing how long it will take to double money invested at a given interest rate.
True
False
Risk transfer might be achieved by purchasing insurance.
True
False
Health insurance provides income to a person who is unable to work due to a work-related illness or injury.
True
False
A budget is similar to a cash flow statement because both are used to record estimated income and expenses.
True
False
Bank checking and savings accounts are insured up to the legal limit of $250,000 per depositor per bank.
True
False
The first step in the decision-making process is to
Compare choices
Define the problem or goal
Gather information
Consider the opportunity cost
____________ is a common internet scam that uses email messages to deceive you into disclosing personal information.
Identify theft
Web fraud
Phishing
Hacking
An auto insurance policy provides liability coverage of 100/300/50. What is the amount of property damage covered by this policy?
$300,000
$100,000
$50,000
$0
__________ is a government-sponsored health insurance program funded by employee payroll deduction and matching employer contributions.
Medicare
Medicaid
Medigap
All of these
Homeowners insurance covers property owners' losses from all the following except
Depreciation
Hazards
Crimes
Liability
Debit cards carry all the same protections provided with credit cards.
True
False
Group life insurance makes it possible for individuals who would not qualify for an individual policy have life insurance.
True
False
An umbrella policy is so named because it provides liability coverage above that of your homeowners and car insurance.
True
False
Which of the following is the most liquid?
Savings account
Money Market Account
Certificate of Deposit
Savings Bond
Which type of insurance coverage protects against damage to your own vehicle when you are at fault in hitting another car?
Liability coverage
Collision coverage
Comprehensive coverage
Personal injury protection
Your net worth can be computed as
Assets plus liabilities
Cash inflows minus cash outflows
Assets minus liabilities
Assets mines cash outflows
The amount of money a person has to spend after needs are met is called
Net cash flow
Discretionary income
Net worth
Disposable income
What type of auto insurance are you required to have by Nebraska Law?
Collision insurance
Comprehensive insurance
Liability insurance
Under/uninsured insurance
What type of additional auto insurance can you purchase that covers your car if you are hit by a driver without insurance?
Liability insurance
Under/uninsured insurance
Comprehensive insurance
Collision insurance
Self-insuring is an example of which risk strategy?
Risk Reductions
Risk avoidance
Risk transfer
Risk assumption
