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Personal Finance
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Final Exam Review
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
What is a financial bond?
A debt instrument - like an IOU issued by a govt. or corp.
A loan from one company to another
Partial ownership in a company
Glued together
2
What is a stock?
Hording
Partial ownership in a company
The right to make money
A loan to a company
3
What does the A in SMART stand for?
aboulia - loss of ability to make decisions
Artistic - a goal must be creative
Attainable - a goal must be reachable; you CAN do it.
Academic - a goal must be scholarly
4
Which is an example of a variable expense?
Gas or clothes
One that stays the same
Car or House Insurance
Rent or Mortgage payment
5
What is the definition of to need?
To have a strong desire for something
Needy
To require something in order to live, succeed or be happy
Setting up a budget
6
What is a deductible?
Specific conditions for which the policy will not provide
Preexisting health problem
Waterbird with a broad blunt bill, short legs, webbed feet
Amount of money you must pay before you policy starts paying
7
What does the M in SMART stand for?
Macaronic - muddled or mixed-up
Mental - you have to be able to think about the goal.
Maximum - there are no limits for goals
Measurable - number attach way to know I've reached the goal
8
What are liabilities?
Value of a persons assets minus their liabilities.
Not telling the truth
Anything owned that has commercial or exchange value.
The money that an individual or organization owes.
9
Which one is not an advantage of using credit?
Safety
Higher Cost to buyer
Immediate possesion
Flexibility to time purchases and take advantage of sales
10
What does the S in SMART stand for?
Sarcastic - a goal must say one thing and mean another.
Special - everybody gets a ribbon
Simple - a goal must be easy.
Specific - a goal must be focused.
11
What is net worth?
The money that an individual or organization owes.
Anything owned that has commercial or exchange value.
Being Rich
Value of a persons assets minus their liabilities.
12
Mutual funds allow investors to diversify.
True
False
13
What is a beneficiary?
The demand by an individual to recover losses
The payment to the insurance company for insurance coverage
The favorite
Recipient of the insurance money
14
What is an executor of a will?
The CEO of a company
Person responsible for making sure wishes are carried out
An explanation of who should receive your assets
A statement that the document is a will
15
Gross pay is the money you make after all taxes are taken out
True
False
16
Which is an example of a periodic expense?
Car or House Insurance
Gas or clothes
One you like to pay
Rent or Mortgage payment
17
Which is NOT one of the three C’s of credit?
Collateral
Character
Competitive
Capacity
18
What is the main purpose of disability insurance?
Replacement income if you have an accident and can't work
So you can quit working
To cover your medical expenses if you have an accident
To provide your family with income when you retire
19
The most effective way for insurers to employ risk pooling is to:
Keep the risk pool as small as possible.
Group as many people into the same risk pool.
Separate the riskiest people into their own risk pool.
Just Guess
20
Calculate the interest for $19,000 principal at 6.5% interest for one year.
$1235
$123,500
$2923
$29,237
21
Provides benefits to retired people and those who are unemployed or disable
Disability Insurance
Life Insurance
Social Security
Benificiary
22
What does the T in SMART stand for?
Thoughtful - must take into account the feelings of others.
Talliate - to impose a tax
Trust-worthy - a goal should be worthy.
Time - must be reached within a specific length of time.
23
The skills, knowledge, and experience possessed by an individual
Grant
Scholarship
Human Capitol
Student Loan
24
What are assets?
Value of a persons assets minus their liabilities.
Anything owned that has commercial or exchange value.
The money that an individual or organization owes.
Rent or Mortgage payment
25
Which is an example of a fixed expense?
Gas or clothes
One that changes
Car or House Insurance
Rent or Mortgage payment
26
What is the definition of to want?
Spoiled
To require something in order to live, succeed or be happy
Setting up a budget
To have a strong desire for something
27
Education can increase human capitol and earning potential as well decrease unemployment risk.
True
False
28
Pays out a sum of money either on the death of the insured person or after a set period.
Disability Insurance
Life Insurance
Not having Insurance
Health Insurance
29
What does the R in SMART stand for?
Reguerdon - to reward
Relevant - a goal must mean something to you
Responsible -a goal must allow you to take charge.
Respectful - a goal must allow you to be kind and polite.
30
In general, an insurance company will charge less for "high risk" cases than "low risk" cases.
True
False
