Liability insurance covers

Other people and their belongings

Renters insurance is for:

Tenants to cover their belongings

Liquidity can best be described as:

how quickly and easily an asset can be converted to cash

Property Insurance covers:

Policy holder and their belongings

Why should you calculate your debt-income ratio?

To estimate if you can pay back student loans

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Financial Literacy Final Exam 2018 Part 1

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Review for Multiple Choice Section of Financial Literacy Final Exam

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Questions 15

Answers

1
Liability insurance covers
Property only
Automobiles only
Policy holder and their belongings
Other people and their belongings
2
Which of the following is NOT a public good or service?
Estelle Manor State Park
Stockton University
Wa-Wa
Expressway
3
Mortgage Insurance is required when:
> 20% equity in home
have damaged property in the past
credit score is low
< 20% equity in home
4
Income tax is calculated by:
Set % of Income
An unfair system
Progressive tax system
Whatever you want to pay
5
Renters insurance is for:
Landlords to cover their properties
"Twenty Somethings" still living at home
Tenants to cover their belongings
Homeowners
6
Liquidity can best be described as:
measurement of assets minus liabilities
Amount of $ in checking account
Amount of $ in investments
how quickly and easily an asset can be converted to cash
7
An account used for a fixed period of time:
Savings Account
Money Market Accout
Checking account
Certificate of Deposit
8
Property Insurance covers:
Policy holder and their belongings
Others and their belongings
All property
Rental Properties
9
The $ paid each month to purchase an Insurance Policy
Co-Pay
Deductible
Claim
Premium
10
Investing risk/return relationship
high risk = low return
high risk = high return
low risk = high return
There is no relationship
11
Why should you calculate your debt-income ratio?
To estimate if you can pay back student loans
So you go to the most expensive school possible
To determine the Opportunity Cost
So you borrow the maximum amount possible
12
The form used to estimate how much taxes should be taken from your paycheck
W-4
W-2
1040EZ
1099
13
The following are characteristics of Property taxes EXCEPT
rate varies by location
charged by State and Local
paid on cars and homes
Not expensive in NJ
14
Who is Medicare for:
Senior Citizens
Low-Income families
Children
Everyone
15
The out of pocket $ that must be paid before an Insurance Company will cover the remainder
Deductible
Co-Pay
Claim
Premium

Financial Literacy Final Exam 2018 Part 1 Flashcards | StudBud