WorksheetsConsumer Final
Total questions: 70
Worksheet time: 34mins
The out of pocket cost to the insured when a loss occurs is called...
Premium
Deductible
A stone hits your windshield. Which type of coverage would likely cover this expense?
Collision
Liability
Comprehensive
None
What factors impact the cost of your auto insurance premium? (hint: choose 3 correct answers)
Deductible amount
The vehicle you are insuring
Your income
Driving record
Jennifer has an auto policy of $20,000/$40,000/$10,000. The $10,000 covers
Per person bodily injury
Property damage per occurrence
Per occurrence bodily injury limit
Total amount of insured coverage
Under current law, until what age can a child stay on their parents' health insurance?
18
21
26
29
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
How can you NOT obtain health insurance?
Signing up with the insurance program through your employer
Shopping on the Health Insurance Marketplace
Signing up at your family doctor's office
Remaining on your parents' plan if you are under age 26
Who would likely pay the highest premium on car insurance?
34 year old male
18 year old female
18 year old male
34 year old female
This is made monthly (or on a set schedule) and is a payment the consumer makes in exchange for having coverage.
Deductible
Copay
Coinsurance
Premium
The Illinois state minimums of 25,000/50,000/20,000 mean:
You must have at least $25,000 in liability bodily injury for one person, $50,000 for multiple people injured, and $20,000 for liability property damage
You must have at least $25,000 in comprehensive, $50,000 for collision, and $20,000 for liability property damage
You must have at least $25,000 in liability bodily injury for one person, $50,000 for multiple people injured, and $20,000 for uninsured/underinsured coverage
Which 2 Auto Insurance coverages are required in Illinois?
Collision
Liability Property Damage
Comprehensive
Liability Bodily Injury
Which health insurance plan would be best if your number one priority was to receive the best medical care regardless of cost?
PPO: Platinum
HMO: Platinum
PPO: Bronze
HMO: Gold
I may be able to decrease my insurance premium if I... (select 2)
Decrease my deductible
Ask nicely
Increase my deductible
Bundle multiple different insurance policy's together with the same company
The best time to get life insurance would be
When you go to college
When you retire
When you start a family/have dependents
What is a benefit to renting a place over buying
Renting allows you the freedom to personalize your space
Renting is less responsibility & makes it easier to relocate
Renting allows you to build equity and gain money back if you sell
Renting makes you responsible for any unplanned expenses
Which of the following is covered by collision insurance?
You run into wall and crash car while talking on cell phone
A hail storm damages your car and leaves dents in thehood
You hit friend’s car and pay for damages to friend’s car
You are in an awful accident and need medicaltreatment
If I want to leave my apartment before my lease is over, I can look to ______ to someone else for the remainder of the lease. Once my lease is over I am ______ responsible for finding someone to take my spot. Once my lease is up, as long as I did not cause any damages, I will get my ______ back.
transfer, not, security deposit
sublet, not, security deposit
trade, totally, rent
sublet, totally, rent
Advantages of buying/financing a car versus leasing include... (2 answers)
No mileage limits
No down payment/up front costs
Can drive newer cars for cheaper than buying
Will own the car after it is paid off
How can you make money on stocks? (multiple answers)
A capital gain
Interest
Dividends
Holding the stock at least 3 years
Why is compound interest more beneficial than simple interest? (multiple answers)
Your money grows faster when it is compounded
You earn interest on your interest
Fees for compound interest are greater than simple interest
Compound interest is hard to calculate, so fewer use it
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
You bought 10 shares of stock in StreamingVideoCo for $40 per share. Three months later you sold the ten shares of stock for $100 per share. What was your profit or loss on StreamingVideoCo stock? Assume that StreamingVideoCo didn't pay a dividend during that period.
Loss of $300
Gain of $600
Loss of $150
Gain of $1000
Which investment vehicle represents an ownership in a company?
Stock
Corporate Bond
Savings account
U.S. Treasury Bond
Which of the following investment types are the least risky?
savings account
treasury bonds
real estate
stocks
________________________ are a mix of different stocks (and maybe bonds too).
Money markets
Securities
Mutual funds
none of the above
Which type of investment typically carries the largest risk (out of the choices shown)?
individual stocks
treasury bonds
savings accounts
mutual funds
Which of the following investment types will result in interest being paid? (multiple answers)
Stock
Bond
Savings Account
Generally, what is the relationship between investment risk and age?
As you get older and closer to retirement, your investment risk should increase.
As you get older and closer to retirement, risk will not matter as much.
As you get older and closer to retirement, your investment risk should decrease.
It is important to consider the liquidity of an investment because...
Liquidity effects interest
The more liquid an investment, the more it will grow.
If you need the money for an emergency, some assets (like stocks) may be difficult to get your money withdrawn.
How does selling shares on the stock exchange benefit companies?
They rely on a low return when selling shares.
They are immune to any volatility in the stock exchange when they sell their shares.
They receive funds to further expand their company.
They get more customers than when they did not sell shares.
What is a certificate of deposit (CD)?
A savings account from the government
A type of savings account where you agree to not withdraw your money for a certain period of time in exchange for a higher interest rate/APY
A grouping of multiple stocks
A type of savings account where you can withdraw at any time
What is a bond?
An investment that acts like a loan from a government or company where they pay you interest yearly in exchange for you letting them borrow your money.
An investment that acts like a loan to you so that you get more money up front and have to pay a company interest.
An investment that acts like a loan to you so that you get more money up front and have to pay the government interest.
What does it mean to pay yourself first?
Buy yourself something you really want before you pay bills
Put money in your savings account before anything else
Pay off your credit card before anything else
When should you start saving for retirement?
Right now, even if you are taking on debt
After you have worked for a few years
As soon as you start your first full-time job & have a steady income
After you have kids
How can you make the most of compound interest?
Invest in many places
Invest lots of money
Invest early and for a long time
Avoid Compound interest
Now it is February, you receieved the forms you needed by January 31st. Now you need to complete 2 forms in order to file your Federal Taxes and your State Taxes. Which 2 forms will you need to complete in order to file your taxes? (DEADLINE IS APRIL 15)
W2, W4
W2, 1099INT
1040EZ, IL1040
1040EZ, W4
What is the type of pay you earn BEFORE taxes & deductions?
Direct Compensation
Net Wages
Gross Wages
Pre-Wages
For the 50/30/20 Rule, what does each number represent?
50% Fixed/30% Variable/20% Discretionary
50% Needs/30% Savings Goals/20% Wants
50% Wants/30% Needs/20% Savings Goals
50% Needs/30% Wants/20% Savings Goals
Which of the following is an example of a FIXED expense
Clothing
Food
Rent
Entertainment
What insures your bank account up to $250,000?
Liability insurance
FICA
FDIC
An advantage of this investment is the automatic diversification it provides:
Money Market Account
Certificate of Deposit (CD)
Mutual Fund
Single Stock
Advantage of a ______ over a _____ are better rewards, and building your credit score
credit card, debit card
debit card, credit card
cash, debit card
The ______ your credit score, the _____ your interest rates will be.
Lower, higher
Higher, lower
Higher, higher
Lower, lower
Which of the following statements best summarizes the basic economic problem of scarcity?
Resources are limited and wants are limited
Resources are limited and wants are unlimited
Resources are unlimited and wants are limited
Resources are unlimited and wants are unlimited
2. In Country A the citizens must make decisions about what they purchase. Because each citizen has limited income they must decide what purchases to make with that income. Many citizens choose to attend college. By making this choice, they give up the chance to work those 4 years. What does working represent in this scenario?
Bartering
Opportunity cost
Specialization
Circular flow of money
In Country A the citizens must make decisions about what they purchase. Because each citizen has limited income they must decide what purchases to make with that income. Citizens make most of the decisions but the government is still slightly involved. What type of economy is Country A?
Command economy
Market economy
Mixed economy (More market economy than a command economy)
Mixed economy (More command economy than market economy)
Raj had put money in a savings account that earned 2% annual interest. After saving for many years, he realizes that inflation has rose by about 4% annually. How would Raj most likely feel?
He is pleased because his purchasing power increases
He is disappointed because his purchasing power decreases
He is pleased because his purchasing power decreases
His purchasing power is not affected
Economists measure the strength or weakness of the economy by using economic indicators. Which of the following best describes the Gross Domestic Product (GDP)?
It measures the changes in price for a market basket of goods over time.
It measure the total dollar value of all final goods and services produced in a country in a given year.
It measures the current percentages of individuals under the age of 16 who are actively seeking employment but cannot find it.
It measures the amount of new housing starts in a year.
If the economy is in a recession, which fiscal policies would the government typically use to help stabilize the economy?
Reduce Taxes and increase government spending
Reduce Taxes and decrease government spending
Increase taxes and increase government spending
Increase taxes and decrease government spending
Which of the following is a purpose of taxation?
To fund public goods and services
To help large businesses expand
To limit government involvement in the economy
To help encourage a market economy
Individual income tax is the largest revenue for which level of government?
Municipal Governments
Local Government
Federal Government
Government does not tax income
Property tax is the largest revenue for which level of government?
Local Government
State Government
Federal Government
Government does not tax property
Social Security & Military Spending are the largest expenditures for which level of government?
Local Government
State Government
Federal Government
Government does not provide Social Security
A country chooses to let the government make the majority of the economic decisions, but still allows for some individuals to start a business. What best describes this type of of economy?
Mixed Economy (more market)
Mixed Economy (more command)
Command Economy
Market Economy
All taxes reduce an individual’s income. However, some taxes take a greater percentage of income as income rises. Other taxes take an equal percentage of income. And some taxes will take a higher percentage of income from people with low incomes. Using the table above, which of the following taxes is considered to be a proportional tax?
Tax A
Tax B
Tax C
None of the above
Using the table above, which of the following taxes is considered to be a progressive tax?
Tax A
Tax B
Tax C
None of the above
What best describes the budget in the year 2013?
The total national debt
A balanced budget
A budget surplus
A budget deficit
