Which best describes the benefits of having insurance?

Ins w/ emergency savings provides a sense of fin security

Eric has chosen Amanda to be the beneficiary of his life ins policy. What does this mean?

Amanda will receive any proceeds when Eric dies.

Megan’s credit card statement indicates that she is now paying a penalty APR. Why?

Megan missed making her Jan & Feb CC pmts while in Europe.

Carson’s wallet has been stolen. Which is not something an identity thief might do w/ the info?

Take a college admissions exam in Carson’s name

Which is an act of identity theft?

Wrongfully acquiring & using someone’s identity

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

make the final amt pd substantially higher than purchase pr.

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

She may get CC w/ a co‐signer or proof of inc to make pmts.

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

Check each credit report at least once per year.

Chris wants to decrease risk of fraud of her credit cards. Which strategy is most effective?

Signing the back of card with sig. & “Please see picture ID”

studbud

Personal Finance 6.03-6.05

16 termsStudBud Administration431 plays

#PersonalFinance #6.03-6.05

Flashcards16 cardsFPractice quizPHost liveL

Questions 16

Answers

1
It is recommended that life insurance be purchased when the:
individual flies in an airplane.
individual reaches the age of 50.
individual has dependents.
2
Which best describes the benefits of having insurance?
policyholder may become better off fin if an accident occurs
Ins w/ emergency savings provides a sense of fin security
Required by law to purchase ins so benefits don't matter.
3
Eric has chosen Amanda to be the beneficiary of his life ins policy. What does this mean?
Amanda will receive any proceeds when Eric dies.
Amanda is required to serve as the executor of Eric’s estate
Amanda must pay the ins premiums to keep the policy
4
Insurance can be purchased to protect one from which losses?
Maintaining the price of your home
Health care expenses
Stock market losses
Car maintenance
5
Maggie will need to pay $120/ month for health insurance policy. This monthly payment is the:
premium
deductible
co‐insurance.
6
Megan’s credit card statement indicates that she is now paying a penalty APR. Why?
Megan missed making her Jan & Feb CC pmts while in Europe.
Megan’s CC payment was paid in full for the last 6 mnths.
Megan’s lower introductory APR is over and increased.
7
Carson’s wallet has been stolen. Which is not something an identity thief might do w/ the info?
Make purchases with Carson’s credit card
Use Carson’s name during an arrest
Take a college admissions exam in Carson’s name
Rent an apartment under Carson’s name
8
Which is an act of identity theft?
Having the same name as another person
Wrongfully acquiring & using someone’s identity
Taking the identity of another individual for a costume
Receiving permission to use a parents’ CC for school clothes
9
Paying the minimum payment on a credit card every month will:
pay a large % of the total balance owed every month.
allow the cardholder to avoid paying any interest charges.
make the final amt pd substantially higher than purchase pr.
10
Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow?
Shred all sales receipts as soon as possible
Use a credit card.
Use a debit card.
Black out the bank account numbers on bills
11
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 will need to use a special application while under 25.
She may get CC w/ a co‐signer or proof of inc to make pmts.
12
Which is a general rule when dealing with credit reports to minimize identity theft?
Report mistakes to only one credit reporting agency
Check each credit report at least once per year.
Wait 60 days before disputing any wrong information found
Keep credit reports in an easily accessible location
13
Matt wants to guard his personal info. Which personal information is least likely to be misused
Phone numbers
Bank account numbers
Credit card numbers
Driver’s license numbers
14
Which action will not make an individual vulnerable to identity theft?
Throwing mail in the garbage
Using a computer without updated spyware protection
Paying cash for a movie ticket
Responding to an email from one’s depository institution
15
Patty moved into a new apt with her friend. Who is responsible for purchasing renter’s ins?
The property manager
Patty and Emma
Patty and Emma’s parents
16
Chris wants to decrease risk of fraud of her credit cards. Which strategy is most effective?
Giving account numbers over the Internet rather than phone
Signing the back of card with sig. & “Please see picture ID”
Carrying all CCs in her wallet so they don't get lost

Personal Finance 6.03-6.05 Flashcards | StudBud