Financial Literacy - Final Exam Prep

If I wanted a security that provided me with current income, I would most likely be looking for

One can take advantage of full Social Security benefits at the age of

Umbrella policies typically include coverage for liability losses that are in excess of the limits of the home policy.

The loss of value in a car over time is called

The rate of return on liquid assets is relatively high compared to other types of investments.

MAXIMUM auto liability policy limits are determined by whom?

Disability income insurance provides benefits that are designed to

The maximum amount of insurance coverage on a checking or savings account is

Keogh and SEP plans provide tax-deferred methods for the self-employed to save for their retirement.

_______ would be considered taxable income.

A ____ stipulates whether a bond can be retired before its regularly scheduled maturity date and under what conditions.

Collateral is an item of value used to secure the principal portion of a loan.

Consumers whose debt burden has become very heavy might apply for a(n)

A stock portfolio containing 80% growth-focused mutual funds is most likely to be appropriate for

The purpose of a credit report is to evaluate the kind of risk you pose to the lender.

Nonforfeiture rights of a life insurance policy guarantee that a policyholder will not lose his or her _________.

The stated interest rate on your account is 7.12% w/ interest paid semiannually. Your effective rate of interest will be

Investment vehicles that systematically pays out benefits over an extended period of time are

The total return of a portfolio is influenced far more by specific security selection than asset allocation.

The three parts of your personal balance sheet are

Variable auto ownership costs are most dependent on

Which of the following best describes a “pre-existing condition”?

You automatically accrue interest when making a purchase on a credit card.

Whole life insurance is designed to provide

Your ______ is an example of a liquid asset.

Portfolio management involves making decisions in order to

Interest rates on _______ are typically higher than on any other form of consumer credit.

A capital gain is the result of

Most families find it difficult to discuss money matters.

All of the following are key items lenders look at in granting credit EXCEPT

Commercial banks are insured by

A _______ is an agency that provides credit information about individual borrowers to lenders.

Always paying cash is helpful in establishing a high level of creditworthiness.

For the first 15 years of an amortized 30-year mortgage, the majority of each monthly payment goes to

Portfolio rebalancing refers to buying and selling intended to return a portfolio to its target allocation levels.

If you do not wish to itemize deductions, you can use the

Collision protection pays for damage to

Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or family.

The US has a progressive tax system, one in which higher-income people pay ______ than lower-income people.

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the