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Future Smart: Your Financial Future (Module 6)

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

If Chris has car liability insurance, what damage would he be covered for?

a)

Repairing damage to other cars if he got into an accident that was his fault

b)

Repairing damage to his own car if he got into an accident that was his fault

c)

Repairing damage to his own car that was caused by storms or theft

d)

Repairing damage to his own car that was caused by another driver who does not have car insurance

2.

What is a premium?

a)

The amount you pay the insurance company for coverage.

b)

The amount you are personally required to pay before your insurance covers the cost.

c)

A fixed fee you pay for specific medical services, like a visit to the doctor's office or the Emergency Room.

d)

The most you have to pay for health care in a full year.

3.

When deciding how to invest your money, which of the following is least important to know?

a)

When you will need to use the money

b)

Whether or not deposits can be made online

c)

The expected rate of return on your investment

d)

How risky the investment is

4.

What might be one reason why a stock becomes more valuable over time?

a)

The industry is growing

b)

The company is well-managed

c)

There is a lot of demand for the product

d)

All answers are correct

5.

Which of the following statements about buying and selling stock is TRUE?

a)

A stock exchange is the physical place where stocks are traded.

b)

It is illegal to buy stocks online.

c)

Stock prices stay the same most of the time.

d)

In order to sell a stock, you must have at least 1,000 shares.

6.

_______________ are loans to a company or government for a set amount of time. They are considered low-risk investments.

a)

stocks

b)

bonds

c)

mutual funds

d)

deposits

7.

In addition to paying $100 per month for health insurance, Janine is responsible for paying her first $500 medical bills every year before her insurance covers any costs. The $500 Janine must pay is called the:

a)

premium

b)

deductible

c)

copay

d)

annual out-of-pocket maximum

8.

A ____________ is a small piece of ownership in a company.

a)

stock

b)

bond

c)

mutual fund

d)

derivative

9.

Someone is retiring next year. What would be an appropriate amount of risk to take with their investments?

a)

Highest risk, highest growth

b)

Medium risk, medium growth

c)

Lower risk, lower growth

d)

No risk. Just savings accounts

10.

Over time the average rate of return on stocks is:

a)

Less than 2%

b)

3%

c)

4%

d)

More than 5%

11.

Which of the following statements about health insurance is FALSE?

a)

People use insurance to reduce their risk of having very large medical expenses.

b)

Insurance plans with different premiums and deductibles let you decide how much financial loss you are willing to risk

c)

Paying for health insurance is always cheaper than paying for your own medical expenses