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Practice wise test
Practice wise test
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Flashcards
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Answers
1
Generally, the higher the deductible on an insurance policy, the
more frequently the premium has to be paid
greater the premium
less frequently the premium has to be paid
lower the premium
2
The only type of life insurance that does not develop a cash value is:
Whole life insurance
Variable universal life insurance
Universal life insurance
Term life insurance
3
Which of the following insurance covers vehicles?
Life
Racing
Automobile
Mortgage
4
What is a credit score?
A measure used to indicate a person's gross wealth
A # used to determine how much credit to extend to a person.
A formula based solely on a person's earnings.
5
Predatory lending practices generally include
An interest rate based on the borrowers credit history
Very high interest rates and fees
Repayment terms that the consumer can afford
Responsible financial advisers
6
One example of a long-term retirement goal is to
invest in high risk securities
end the use of credit cards.
close savings accounts
deposit at least $100,000 in a retirement account.
7
Consumer finance companies, which are often advertised on TV, are also known as:
Purchase loan lenders
Banks
Small loan companies
Savings and loan associations
8
Shares of stock are also known as:
Equities
Debts
Bonds
Money market funds
9
Why is maintaining a good credit history important to your future?
It is folklore and not important.
A good credit history can help your obtain a job, or a loan
Anyone can access your credit history.
You cant open a savings account w/o a good credit history.
10
How can individuals be prepared for losing their job or having a large medical expense?
Pay credit card bills on time
Prepare a budget
Maintain a checking account with sufficient funds
Save at least three months of income
11
Which of the following investment products is guaranteed by the federal government?
Preferred stock
Common stock
U.S. Treasury notes
Corporate bonds
12
Why is term life insurance usually the least expensive type of life insurance?
The policy provides coverage for a lifetime
The policy only pays a death benefit
The policy is available to all consumers
The policy builds a cash value
13
The common name for U.S. currency is:
Yellow backs
Green backs
Orange backs
Blue backs
14
Lucy has no insurance. The situation(s) should she consider insuring against first are:
Losses resulting from an illness, accident, or disability
Death so her financial obligations are paid
Property losses and auto accidents
Auto collision, and burglary
15
Collateral is:
Required for all loans
Something of value that secures a loan to protect the lender
A form of credit
Something that explains your net worth
16
The National Credit Union Administration (NCUA) insures accounts in:
Credit unions
Savings banks
Brokerage firms
Commercial banks
17
whats the annual finance charge for each $100 owed on a credit card w 16% annual interest rate
$8.40
$1.60
$16.00
$.84
18
Which factor would most likely lead to an increase the interest rate on a person's credit card?
Number of purchases.
Number of cash advances
Total amount charged
Late payments
19
Shelsy sold her stock for a higher price per share than she bought it for. She realized a:
Capital surplus
Capital gain
Dividend
Capital loss
20
Mr. Akon's wife died. The $ he received as the beneficiary on her life insurance is called the:
Cash value
Separate value
Death benefit or face value
Premium or annuity value
21
A factor that is likely to affect the market price of a stock is:
Corporate profits
The number of corporate employees
Wages
The age of the corporation
22
A blank endorsement on a check:
Has no effect on the check
Restricts the use of the check
Cancels the check
Creates a check that can be cashed by anyone
23
Troy has transfers $ electronically from his checking account to his savings account.
An ATM transaction
A savings plan
An installment payment
A debit card transaction
24
Margaret wants to store a valuable coin collection and important papers. consumers should
Rent a safe deposit box for their valuables
Store valuables in locked drawer
Store valuables in a cabinet at home
Hand valuables over to their attorney
