Summer PFL Review

Question 1

This is administered by the federal government for the low income families.

Accepted Answer

Medicaid

Question 2

A service contract is ______________.

Accepted Answer

separately purchased agreement to cover repairs of an item

Question 3

When buying insurance the contract is called a policy.

Accepted Answer

True

Question 4

Earning interest on previously earned interest is called __________.

Accepted Answer

compounding

Question 5

Anything that can cause a loss in insurance, is called a peril.

Accepted Answer

True

Question 6

When investors are pessimistic about the economy.

Accepted Answer

bear market

Question 7

This is NOT an example of a personal financial document.

Accepted Answer

library card

Question 8

The Consumer Credit Counseling Service offers to supervise debt repayment plans.

Accepted Answer

True

Question 9

People are more likely to by houses when interest rates are up.

Accepted Answer

False

Question 10

Who is responsible for a loan when the borrower fails to make payments?

Accepted Answer

Cosigner

Question 11

Renting is a wise choice for someone who wants pets.

Accepted Answer

False

Question 12

An advantage of renting

Accepted Answer

mobility

Question 13

A taxpayer must provide at least ___ of a dependent's support to claim them on the tax return.

Accepted Answer

50%

Question 14

By law an employer must pay for a portion of fitness programs.

Accepted Answer

False

Question 15

Purchaing extra warrenty coverage at the time of purchase is know as extended warrenty.

Accepted Answer

True

Question 16

What is an innocent exaggeration in advertisting called?

Accepted Answer

Puffery

Question 17

What is depreciation?

Accepted Answer

loss of value as the item gets older

Question 18

Property damage liability insurance will

Accepted Answer

protect you when driving another person's vehicle

Question 19

Adding interest earned and subtracting fees in the checkbook is the first step in balancing it.

Accepted Answer

False

Question 20

When putting money up to buy something at the time of purchase, it is called a ________.

Accepted Answer

down payment

Question 21

If you recieve several speeding tickets, your premium on your insurance could go up.

Accepted Answer

True

Question 22

When more money is spent then earned or received, it is called a ________________.

Accepted Answer

deficit

Question 23

What is the loss on the sale of an investment called?

Accepted Answer

capital loss

Question 24

Inflation is caused when prices of general goods go up.

Accepted Answer

True

Question 25

The first step in balancing a checkbook is adding interest earned to the checkbook balance.

Accepted Answer

False

Question 26

Stop-loss requires policyholder to pay costs up to a certain amount & insurance pays the rest.

Accepted Answer

True

Question 27

The amount of your salary may be affected by ___________________.

Accepted Answer

your education

Question 28

Overdraft protection is

Accepted Answer

automatic loan on an overdrawn account

Question 29

The total dollar amount you pay to use credit is the finance charge.

Accepted Answer

True

Question 30

An example of a variable expense is insurance premiums.

Accepted Answer

False

Question 31

Ways to reduce your insurance rates include all EXCEPT __________.

Accepted Answer

go to a private school

Question 32

When filling out tax forms, you receive some of your social security contributions back.

Accepted Answer

False

Question 33

Take home pay is equal to your salary.

Accepted Answer

False

Question 34

What does COBRA do?

Accepted Answer

allows an employee who loses their job to keep the insurance

Question 35

Does NOT designate ownership in a company.

Accepted Answer

Corporate Stock/Bond

Question 36

A pension plan is retirement plan funded in part by employers.

Accepted Answer

True

Question 37

Banks will offer lower fees and loan rates than credit unions.

Accepted Answer

False

Question 38

When purchasing a Certificate of Deposit, you must deposit a minimum amount.

Accepted Answer

True

Question 39

A tax on a specific good or service is called ______________ tax.

Accepted Answer

an excise

Question 40

When investors feel pessimistic about the economy it is called a _____________ market.

Accepted Answer

Bear

Question 41

Impulse buying is a positive shopping technique.

Accepted Answer

False

Question 42

What provides a potential employer with why you are interested in the particular job.

Accepted Answer

cover letter

Question 43

Bait & switch in advertising lures in the shopper with one item & then gets them to buy another

Accepted Answer

True

Question 44

Real estate is an example of a liquid asset.

Accepted Answer

False

Question 45

The detailed examination of your tax return by the IRS is called _______________.

Accepted Answer

a tax audit

Question 46

The Securities and Exchange Commission will monitor financial advisors.

Accepted Answer

True

Question 47

A living arrangement where organization members do not own the land where the building sits.

Accepted Answer

condominium

Question 48

In Chapter 13 bankruptcy, the debtor usually gets to keep most of his or her property.

Accepted Answer

True

Question 49

You have to pay more__________for life insurance the older you get?

Accepted Answer

premiums

Question 50

A good budget has the characteristic of inaccessibility.

Accepted Answer

False

Question 51

Low risk of default in pay out would be _____________________.

Accepted Answer

government bonds

Question 52

A 403(b) deduction is for a non-profit organization.

Accepted Answer

True

Question 53

You earn a higher interest rate on a savings account over buying a certificate of deposit.

Accepted Answer

False

Question 54

Rent is the biggest monthly expense as a tenant.

Accepted Answer

True

Question 55

An implied warranty must be in writing.

Accepted Answer

False

Question 56

A legal document that describes the conditions of a rental agreement is called ______________.

Accepted Answer

lease

Question 57

A restrictive endorsement directly deposits into the payee's account.

Accepted Answer

True

Question 58

Vacation time is an example of a tax-exempt benefit.

Accepted Answer

False

Question 59

Diversification is a key reason for buying a municiple bond.

Accepted Answer

False

Question 60

Mutual funds are investements where investors pool their money to buy

Accepted Answer

all of the above

Question 61

An example of a liquid asset is ____________

Accepted Answer

Savings Account

Question 62

In the "five C's of credit", what does capacity mean?

Accepted Answer

Your assets exceed your liabilities.

Question 63

A municipal bond will

Accepted Answer

all of the above

Question 64

Everyone receives a deduction on the 1040EZ form.

Accepted Answer

True

Summer PFL Review

Questions 89

Summer PFL Review

Questions 89