Which of the following best describes the benefits of having insurance?

Insurance & emergency savings give financial well-being

What does being a beneficiary of a life insurance policy mean for Amanda?

Amanda will receive any proceeds if the Eric dies

18_year_old Jenny has no credit history. What can she do to build a positive credit rating?

Jenny should obtain a secured credit card.

to decrease the risk of fraudulent use of her credit cards:

signing the back of her card and “Please see picture ID”

How can he LEGALLY avoid paying interest when using his credit card?

pay the credit card balance in full each month b4 due date

Which of the following is NOT something an identity thief might do with thing in a wallet?

Take a college admissions exam in that person's name.

What does it mean to keep your use of credit within safe boundaries?

$ borrowed, not including her house, under 20% of net income

Which is a general rule when dealing with credit reports to minimize identity theft?

Check each credit reports at least once per year.

Which scenario best describes what may have caused Meghan to have to pay the penalty APR?

missed making her January and February credit card payments

What is the best tip you should consider to safely order online & maximize satisfaction?

Review shipping and return policies in advance

Automobile Liability Insurance protects the policy holder in which situation?

James backed into a vehicle in the grocery store parking lot

Edward wants to develop a positive credit history. How should he do this?

maintain reasonable amounts of available credit

The equity that you build by making mortgage payments is:

the value of the home after the mortgage debt is subtracted

Which statement below explains the importance of understanding the process of borrowing money?

When you are borrowing, you are spending future income.

In which scenario below should renters insurance be considered?

Zach and Leah have rented an apartment in an urban area.

Paying the minimum payment on a credit card every month will:

make the total paid much higher than the initially charge

Which statement should she include in her description of closed_end credit?

Equal payments on regular basis until the loan is repaid.

Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?

Sarah must have a co_signer or proof of income

What should he consider first in the planned buying process to purchase a new car?

Evaluate opportunity cost & trade_offs to purchasing the car

What is an example of an unbiased source for conducting research?

A product review from an independent company

Jake’s credit application has been declined because of his negative credit history because?

Jake has applied for 4 credit cards & a car loan in 6 weeks.

What is true about the meaning of open_end credit, Ryan should include which statement?

Credit given n advance, doesn't apply for credit each time

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Personal Finance 6.00 Review

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#PersonalFinance 6.00 most missed questions

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Questions 29

Answers

1
Which of the following best describes the benefits of having insurance?
policyholder may b better off financially after an accident
all risk of financial loss is transferred 2 insurance comp
Insurance & emergency savings give financial well-being
It's required by law 2 buy insurance, benefits don't matter
2
What does being a beneficiary of a life insurance policy mean for Amanda?
Amanda gets a commission for selling Eric life insurance
Amanda is required to serve as the executor of Eric’s estate
Amanda must pay the insurance premiums
Amanda will receive any proceeds if the Eric dies
3
Which expense WOULD NOT be considered part of the total transportation expenses:
automobile payment
parking
depreciation
fuel
4
18_year_old Jenny has no credit history. What can she do to build a positive credit rating?
She should apply for a credit card instead of a bank loan
should get several credit cards to show she can manage them
Jenny should re_apply & include a letter of recommendation
Jenny should obtain a secured credit card.
5
The fee to cover any damages that might occur while living in an apartment is called the:
rental agreement
amenities
security deposit
down payment
6
to decrease the risk of fraudulent use of her credit cards:
signing the back of her card and “Please see picture ID”
carrying all credit cards in wallet so they don’t get lost
giving account numbers over internet rather than the phone
use credit cards 4 all purchases so only needs to pay 1 bill
7
How can he LEGALLY avoid paying interest when using his credit card?
pay the credit card balance in full each month b4 due date
paying interest is required, no legal way 4 him to avoid it
limit the use of his credit cards to balance transfers only.
Pay the minimum balance every month before the due date
8
Which of the following is NOT something an identity thief might do with thing in a wallet?
Rent an apartment under their name
Make purchases with their credit card
Use their name during an arrest
Take a college admissions exam in that person's name.
9
It is recommended that life insurance be purchased when the:
individual reaches the age of 50
individual has dependents
individual flies in an airplane
individual gets their first job
10
What does it mean to keep your use of credit within safe boundaries?
$ borrowed, w/ mortgage & car loan, under 40% of net income.
$ borrowed, not including house, under 40% of her net income
$ borrowed, not including her house, under 20% of net income
$ borrowed, w/ mortgage & car loan, under 20% of net income.
11
The health insurance monthly payment is known as the:
premium
moral hazard
deductible
co_insurance or co-pay
12
Which is a general rule when dealing with credit reports to minimize identity theft?
Wait 60 days before disputing any wrong information found
Keep credit reports in an easily accessible location,
Show mistakes to 1 credit reporting agency, they tell others
Check each credit reports at least once per year.
13
Which scenario best describes what may have caused Meghan to have to pay the penalty APR?
her account was over the limit for 1 week,
lower introductory APR has now increased
credit card payment has been paid in full the last 6 months.
missed making her January and February credit card payments
14
What is the best tip you should consider to safely order online & maximize satisfaction?
Always use the seller offering the lowest price
Review shipping and return policies in advance
Use a debit card
Purchase a warranty
15
Automobile Liability Insurance protects the policy holder in which situation?
A hailstorm caused $2000 damage to his vehicle.
uninsured driver hit James caused $2000 damages 2 James’ car
James backed into a vehicle in the grocery store parking lot
James hit a deer while driving to work on a foggy morning,
16
Edward wants to develop a positive credit history. How should he do this?
have one type of credit account
open credit accounts in their parents’ names
pay cash for the majority of purchases
maintain reasonable amounts of available credit
17
The equity that you build by making mortgage payments is:
the amount of money paid on the home at the time of purchase
a home loan where the real estate is collateral
the value of the home after the mortgage debt is subtracted
purchasing a housing unit as rental property
18
Which statement below explains the importance of understanding the process of borrowing money?
Borrowing is an important part of a financial plan.
Borrowing builds good credit, as u must file a credit report
Borrowing affects present self, has less impact on future
When you are borrowing, you are spending future income.
19
In which scenario below should renters insurance be considered?
Don and Denise are landlords for several rental properties.
Tim and Hanna live w/ his parents and pay rent.
Zach and Leah have rented an apartment in an urban area.
Steve and Teri have purchased a home in a rural area.
20
Paying the minimum payment on a credit card every month will:
help the cardholder pay a credit card in a good time
make the total paid much higher than the initially charge
allow the cardholder to avoid paying any interest charges
pay a large percentage of the total balance owed every month
21
Which statement should she include in her description of closed_end credit?
Equal payments on regular basis until the loan is repaid.
a on going loan the borrower must repay w/ revolving balance
Interest rates vary depending on the repayment history.
Credit limits vary depending on the loan balance.
22
Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?
Sarah cannot obtain a credit card until she turns 21.
Sarah can get a credit card after her 18th birthday.
Sarah must have a co_signer or proof of income
Sarah will use a special application since she is under 25.
23
What should he consider first in the planned buying process to purchase a new car?
Evaluate opportunity cost & trade_offs to purchasing the car
Research sellers 2 determine where 2 purchase the car
Rank product features in order of importance
Calculate the cost of ownership
24
What is an example of an unbiased source for conducting research?
A product review that is five years old
Product review from a seller
A product review from an independent company
Product review from an individual making money from the sale
25
When making a spending plan, which factor would be least important 2 consider when cutting food
How much time she has available to prepare food.
The nutritional value of the foods she purchases.
The skills she has acquired for preparing meals.
Her personal preferences
26
Which is NOT an example of a data furnisher?
Utility company
Landlord
Credit card company
Medical provider
27
Jake’s credit application has been declined because of his negative credit history because?
Jake has 3 credit cards, a car loan, and a mortgage
Jake has received 3 traffic tickets in the past 2 months.
Jake has applied for 4 credit cards & a car loan in 6 weeks.
Jake pays his bills consistently and on time.
28
What is true about the meaning of open_end credit, Ryan should include which statement?
Credit given n advance, doesn't apply for credit each time
Payments are equal & required to be paid on a regular basis
A down payment must be made before receiving a loan.
U borrow an unlimited amount of money if you pay it back
29
A rental agreement is often referred to as:
a mortgage
renters insurance
an amenity
a lease

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