Financial Literacy Quiz 2

Question 1

Banks offer the service of a safe deposit box, which can be used for what?

Accepted Answer

Protect personal documents from potential loss

Question 2

Which of the following types of insurance helps pay for stays in a nursing home?

Accepted Answer

Long-term care insurance

Question 3

Rent-to- own agreements can negatively impact customers because:

Accepted Answer

Consumers will pay a high interest rate on the item

Question 4

Which of the following practices does not lead to a higher car insurance rate?

Accepted Answer

Participate in defensive driving course

Question 5

Which of the following allows a customer to pay deposit on an item, but not receive the item till the balance is paid?

Accepted Answer

Layaway plans

Question 6

If one spends more money than they have in their bank account, they are charged with a what?

Accepted Answer

Overdraft fee

Question 7

Which of the following is the term for a person who relies on someone else financially?

Accepted Answer

Beneficiary

Question 8

When one invests in a commodity, they are investing in a what?

Accepted Answer

Natural Resource

Question 9

When receiving a mortgage loan, if an individual cannot make a large down payment,they will likely have to pay for what?

Accepted Answer

Private Mortgage Insurance

Question 10

Which of the following is the typical amount of time in which a borrower must pay off a mortgage loan?

Accepted Answer

Thirty ( 30) years

Questions 10