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WorksheetsMM TEKS Review Spr24
Total questions: 26
Worksheet time: 13mins
The out-of-pocket cost to the insured when a loss occurs is called
premium
deductible
claim
policy
The emphasis of savings is on
growth over time.
safety principle.
risky investments
. the accumulation of wealth
Which of the following is a risk-free investment?
Stocks
Money Markets Accounts
Corporate Bonds
Real Estate
Which of the following is a justifiable reason for not refunding a tenant's security deposit?
normal wear and tear of premises
holes in the walls
excessive noise
none of these
The higher the rating on an investment grade bond'
the higher the interest rate you will earn
the lower the interest rate you will earn
the more speculative it is
none of these
Which of the following is true of an FHA mortgage loan?
It requires you to pay a monthly mortgage insurance premium
It allows for a smaller down payment
It is backed by the Federal Housing Administration (FHA).
All of these are true
An investment portfolio should
have a strong foundation of safe investments
concentrate on a single investment
exclude any high-risk investments
none of these
When a company's overseas factory is destroyed during protests and rioting, this is an example of
inflation rate
industry rate
political risk
company risk
The legal process that allows a lender to take possession of a house because the borrower does not meet his or her mortgage obligations is called
garnishment
foreclosure
bankruptcy
discharge
Long-term goals may involve
planning a vaaction
saving for college
retirement planning
all of these
When a rental agreement contains a purchase option at the end of the rental term, the renter is said to have
refusal of first right
a balloon option
the right of first refusal
a deterred-payment plan
Under the provisions of current credit card legislation, credit card companies
can raise minimum payments once a year.
can raise minimum payments by up to twice the existing percentage
can raise minimum payments only for new cardholders.
cannot raise minimum payments.
When you own stock in a company that is assessed millions in fines for violating federal safety standards in its products, this is a case of
inflation risk
industry risk
stock risk
company risk
Which of the following is true of a credit card with a fixed interest rate?
the rate cannot be changed.
the rate can be changed with 60 days' notice.
a rate change can be applied to existing balances.
none of these are true.
All of the following are advantages of using credit except
leverage
convenience
security
decreased purchasing power
_____ is a strategy to earn more on your money than the rate of inflation.
Investing
Liquidity
Refinancing
Consolidation
Experts recommend setting aside ____ pay in an emergency fund.
3- 6 months
1-2 years
2-3 years
3 or more years
A person who borrows money is called a(n) .
creditor
lender
borrower
cosigner
A portion of a corporation's profits distributed to stockholders is called a(n)
interest payments
gain on principal
return on investment
dividend
Which of the following is NOT considered part of an estate but can reduce the amount of the estate?
a person's belongings and collectibles
physical and intangible assets
physical and intangible assets
debt
The main objective of personal financial planning is to
Plan for retirement
control your spending habit
reach personal and financial goals
increase the amount in your savings
The purpose of a cash flow statement is to
budget for future spending
summarize assets and liabilities
project the future value of investments
list your cash inflows and outflows for a period of time
If expenses were to exceed income on a budget (spending plan), what would be a financially smart solution?
decrease expenses
use a credit card more often
earn less income
increase spending
What is a budget?
A personal financial statement that list cash inflows and cash outflows.
A personal financial statement that list assets, liabilities and net worth.
Financial planning tool used to track individuals values, needs, wants, and goals.
A spending and savings plan based on your expected income and expenses for a period of time.
Buying insurance is an example of which risk strategy?
risk reduction
risk avoidance
risk transfer
risk assumption
Current credit card legislation is designed to
protect credit card company
protect the consumer
protect the government
none of these
