WorksheetsIA5 Review
Total questions: 31
Worksheet time: 16mins
FIN-FL-10-10.1: Which of the following statements is TRUE about the value of a college education?
A high school graduate can expect to earn about the same as a college graduate.
A college graduate can expect to earn, on average, about $40,000 more than a high school graduate over a career.
If you start college but don't finish, your pay will be closer to the level of a high school graduate than the level of a college graduate.
College is only valuable if you want to increase how much you earn.
FIN-FL-10-10.1: While researching college scholarships to apply for, you see an ad that says, "Enter a few pieces of information, pay $39.99 per month, and we guarantee to win you a scholarship. You don't even have to write an essay! Sign up today with just your name, social security number, and an email address!" How should you proceed?
Sign up, but use a fake email address in case it's spam.
Don't sign up, unless your parent says it's OK to use their credit card for the payments.
Sign up, because at $40 per month, it will be a bargain if they win you thousands in scholarships.
Don't sign up, because you should not pay money to win scholarships, and you should never enter your social security number into unknown websites.
FIN-FL-10-10.1: Which loan type am I? I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.
Unsubsidized Federal Student Loan
Private Student Loan
Subsidized Federal Student Loan
Institutional Student Loan
FIN-FL-10-10.1: Alicia is about to start her first year of college. She knows that while it may seem early, it's a good idea to think about ways she can minimize her total student loan debt while she is still in college. Which of the following steps will be MOST effective in helping her minimize her student loan debt and prepare for loan repayment once she graduates?
Wait until after she graduates to contact her student loan servicer; there won't be much to discuss if she contacts them during her freshman year.
Accept federal unsubsidized student loans first. Then, if she has any remaining balances to cover, accept federal subsidized student loans.
Start researching repayment options and plans only when she is about to graduate.
Make as many interest payments as possible while she is still in school to minimize her total debt after graduation.
FIN-FL-10-10.1: Your friends are having a debate about rules of thumbs to use when it comes to student loan debt. Who is CORRECT?
Miguel says, "You should borrow as much money as you can through private student loans, and then take out federal student loans."
Dani says, "You should avoid student loans no matter what, even if that means you have to work long hours and can't take a full course load."
Jason says, "You should generally limit your borrowing to what you expect to earn as a starting salary when you graduate from college, and avoid private student loans."
Aisha says, "You should borrow all of the financial aid your college offers you in your financial aid offer, even if you don't need it all."
FIN-FL-10-10.1: Julia is creating a budget for her freshman year of college and thinks she can use the same budget for the next three years of her college career. What do you tell her?
"This is a good idea, because you're definitely going to have the same sources of income and categories for expenses throughout all four years of college."
"This is a bad idea, because while the costs of tuition & room and board are guaranteed to stay the same, your sources of income may fluctuate."
"This is a good idea, because you've invested so much time in creating a detailed budget - there's nothing to change! Now you're all set for your entire college career!"
"This is a bad idea, because your income and expenses in each year will fluctuate. Your budget needs to reflect these annual changes."
FIN-FL-10-10.1: Susan has $40,000 of federal student loan debt and chooses to make a monthly payment of $200. Brian also has $40,000 in federal student loan debt and chooses to make a monthly payment of $350. Assuming both loans carry the same interest rate, which of the following statements is TRUE?
Brian will pay LESS in interest over the term of his loan.
Susan will pay LESS in interest over the term of her loan.
Brian will pay MORE in total because he has a lower credit score than Susan does.
Susan's loan repayment term is shorter than Brian's loan repayment term.
FIN-FL-10-10.1: Craig has heard that taking out federal student loans is always preferable to taking out private student loans, but he doesn't understand why. Which of the following would you tell Craig to explain the advantage of taking out a federal student loan over a private student loan?
Federal student loans generally have more flexible and affordable repayment options compared to private loans.
Federal student loans do not need to be repaid.
Federal student loans have higher credit standards than private loans and require a co-signer.
Federal student loans don't charge any interest for the entire term of the loan period.
FIN-FL-10-10.1: Which of the following statements about applying for grants and scholarships is TRUE?
Colleges only offer merit-based (based on your accomplishments) scholarships and grants.
While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for.
Pell Grants are offered based on a student's academic performance.
While the FAFSA is required for federal loans or grants, you don't need to complete it for university, community, or professionally sponsored scholarships.
FIN-FL-10-10.1: In financial terms, when someone refers to the return on investment for a college education, the return refers to the _________________ and the investment is the _______________________.
Increased earnings from attending college, time spent pursuing your degree
Cost of your education and the time spent pursuing your degree, increased earnings from attending college
Decreased earnings from attending college, stock market returns
Increased earnings from attending college, cost of your education and the time spent pursuing your degree
FIN-FL-6-6.2: Which statement accurately describes a revolving line of credit?
You owe the same payment every month
You can buy additional items as you need them without getting approval for each purchase
They do not charge interest
One common example is a car auto loan
FIN-FL-10-10.2: Elizabeth is considering buying a $30,000 car. Which financing option would have the LOWEST expected monthly payment and the HIGHEST expected total interest payments?
$0 down payment, 6% interest, 60 months
$0 down payment, 6% interest, 84 months
$3000 down payment, 6% interest, 60 months
$3000 down payment, 0% interest, 36 months
FIN-FL-11-11.2: The number one reason risk pooling is valuable to the insurance industry is...
It allows companies to charge the same premium to all members of the pool.
It brings together many individuals' premiums so that there is money to cover the select few with losses.
It makes insurance coverage available to everyone, even those who are unable to make their payments.
It is subsidized by the federal government.
FIN-FL-11-11.4: Going to an in-network doctor is a good idea, because...
you will receive a higher quality of care.
you will save on overall costs when compared to seeing an out-of-network doctor.
you will get a significant tax credit for that year.
you will always work with a primary care physician who manages your overall health.
FIN-FL-11-11.16: How is long term disability insurance different from health insurance?
Health insurance only covers the cost of healing the injury/illness, while long term disability covers a percentage of your income while you are away from work due to the injury/illness.
Long term disability only covers the cost of healing the injury/illness, while health insurance covers a percentage of your income while you are away from work due to the injury/illness.
Long term disability insurance is an extension of health insurance offered only at select hospitals.
Health insurance is optional and long term disability is mandatory in all US states.
FIN-FL-11-11.1: Optional insurance plans, such as cell phone and pet insurance, can be useful for people who have a history of frequent visits to repair shops or vets. For folks who do not often need these services, which of the following options is the BEST alternative to these types of insurance plans?
Trying to fix complicated issues themselves by learning online.
Setting aside the monthly premium amount into a savings account as an emergency fund.
Avoiding purchasing a phone or pet until they can pay for the best insurance plans.
Bringing their phone and pet with them everywhere they go so that they can ensure that nothing unexpected happens.
FIN-FL-11-11.5: Margaret opened her mail this morning and is shocked to see her total hospital bill for her recent injury. She's worried she can't afford to pay this bill. What is the BEST thing she can do?
Ignore the bill so that the hospital understands that she can't afford to pay it back.
Use her credit card(s) to pay back the bill.
Take out a personal loan to cover the cost of the bill.
Negotiate a repayment plan in which she can pay the bill back in installments.
FIN-FL-11-11.8: What is the difference between a declaration page and an agreement when referring to your homeowners insurance policy?
Inexpensive policies have the one-page declaration, while full coverage policies have an entire agreement
The declaration page details exactly what is covered, while the agreement outlines how much you'll pay monthly
The declaration page lists all the possessions inside your home, while the agreement explains the details of your policy
The declaration page outlines the premiums, deductibles, and coverage limits, while the agreement provides details on exact coverage
FIN-FL-11-11.7: Ricardo was not paying attention to the flow of traffic and rear-ended the car in front of him. Both cars have damage, but he doesn't have car insurance. What will most likely happen?
As long as the other person has auto insurance, then Ricardo is also covered.
Ricardo will have to pay out-of-pocket for auto repair and possible medical bills for the person he hit.
If the accident happened near a local repair shop, they might be able to fix the cars at a discounted price.
They can split the costs: Ricardo's health insurance will cover medical bills and the person he hit will cover the vehicles' damages.
FIN-FL-11-11.6: If you feel your insurance company is not upholding your policy correctly and you can't resolve it directly with the company, you will likely have the most success by contacting...
Your US Senator or Congressperson
The Federal Trade Commission
Your state's Department of Insurance or Insurance Bureau
Your local police department
FIN-FL-11-11.8: Uma's renters insurance policy has a premium of $15/month, a deductible of $1000, and a personal property coverage limit of $40,000. Her apartment is burglarized and $5,600 of possessions are stolen or destroyed. How much will Uma pay in order to replace her stuff?
$15
$15/month for as many months as it takes her to pay back off the $5600 (approx 370 months)
$1000
$5600
FIN-FL-11-11.7: After getting into a car accident, you should immediately...
Move you and your car to a safe area if possible and check to see if anyone is hurt.
Call your insurance agent and assure them you were not at-fault.
Get out of the car and take photos of the accident.
Start filing your auto insurance claim.
FIN-FL-11-11.10: What is one difference between an HSA and an FSA?
Only an HSA can be used to cover the care for a spouse or qualified dependents.
You use pre-tax money for an FSA and use post-tax money for an HSA.
FSA funds must be used up annually, while HSA funds can accumulate year over year.
An FSA moves around with you even if you change jobs; an HSA stays with your employer.
FIN-FL-11-11.8: A standard homeowners policy will include all of these coverage bundles except...
Dwelling
Other Structures
Personal Property
Earthquake and Flood
FIN-FL-11-11.4: The actuarial value of a plan is...
the percentage of costs the insurance company will cover.
the percentage of costs you will cover.
the percentage of costs that are covered through a government subsidy, if you are eligible.
the percentage of your overall healthcare costs that go toward your monthly premiums for the year.
FIN-FL-11-11.7: Which of the following auto insurance coverages are you REQUIRED to carry in most states (49 out of 50)?
Personal Injury Protection
Collision
Comprehensive
Liability
FIN-FL-11-11.15: Where does funding for Social Security come from?
From people who opt-in to a Social Security plan before age 25
Leftover funding from hospitals and retirement homes
Social Security payroll taxes
Fundraising events hosted by the Social Security Administration
FIN-FL-11-11.7: You let your friend Drucella borrow your car for the weekend while hers is in the shop. She turned on a "No Right on Red" and hit another car. What will happen since Drucella was at-fault?
Since Drucella was the driver, she will be held responsible for the accident she caused.
The costs of an accident that Drucella causes will be split 50/50 between you and her.
Because you own the car, you can be held responsible for the accident that she caused.
As long as you were not present at the accident, you will not be held responsible.
FIN-FL-11-11.7: Which of the following statements about opting in to your employer sponsored healthcare plan vs. getting an individual healthcare plan is TRUE?
An employer sponsored healthcare plan offers a lot of flexibility.
An individual healthcare plan will likely be cheaper in the long run.
An employer sponsored healthcare plan means that your employer likely pays the majority of your premium.
An individual healthcare plan means you can see out-of-network doctors at no extra cost.
FIN-FL-11-11.13: Sloane is 17 years old and after talking with her parents wants to purchase life insurance. How can she benefit from life insurance as a teenager?
Her auto and health insurance premium will decrease.
She will be exempt from paying social security taxes.
Her proof of life insurance will look good on job applications.
She will guarantee insurability while she's young and healthy.
FIN-FL-11-11.7: If your car is broken into and you have to get new windows, what kind of coverage must you have in order for the insurance company to cover the cost of repairs?
Comprehensive
No-fault insurance
Collision coverage
Personal injury protection
