PFL Final

U3: How many years does bankruptcy affect your credit score? a) 20 b) 5 c) 10 d) 1

10

U5: What percentage of U.S. jobs now require a college degree? a) 25 b) 36 c) 33 d) 75

25

U2: What percent of Americans believe they will be able to retire by age 65? a) 80 b) 50 c) 9 d) 29

29

U5: Approximately what percentage of Americans have earned a college degree? a) 36 b) 75 c) 33 d) 25

33

U3: Match the term: Employer-sponsored retirement account where the employer will match the funds that you invest a) 401(k) b) mortgage c) bankruptcy d) insurance e) Credit Score f) Roth IRA g) Traditional IRA

401(k)

U3: What is the best title for the list below? • You purchase a new sound system for your car with a personal check • You get one of your free annual credit reports in order to examine your credit history • You invest some money into the stock market a) Actions That Will Erase Your Credit History b) Actions That Will Lower Your Credit Score c) Actions That Will Raise Your Credit Score d) Actions That Will Not Affect Your Credit Score

Actions That Will Not Affect Your Credit Score

U3: Match the term: Legal proceeding where a person attempts to have their debts cleared. Goes on their credit score for ten years a) 401(k) b) Mortgage c) Bankruptcy d) Insurance e) Credit Score f) Roth IRA g) Traditional IRA

Bankruptcy

U3: Match the term: A rating that determines whether or not an individual will be approved for loans, and what interest rates they will pay a) 401(k) b) Mortgage c) Bankruptcy d) Insurance e) Credit Score f) Roth IRA g) Traditional IRA

Credit Score

U3: Match the term: Safety program purchased for homes, cars, and other property to reimburse you in case of damage or loss a) 401(k) b) Mortgage c) Bankruptcy d) Insurance e) Credit Score f) Roth IRA g) Traditional IRA

Insurance

U4: Government-provided health insurance for older Americans is called - a) Medicare b) COBRA c) Health Savings Accounts (HSAs) d) Fitness Insurance

Medicare

U3: Match the term: Loan taken out to purchase a home a) 401(k) b) Mortgage c) Bankruptcy d) Insurance e) Credit Score f) Roth IRA g) Traditional IRA

Mortgage

U3: Match the term: Investment account for retirement. The government will not charge income tax on profits taken out of the account a) 401(k) b) mortgage c) bankruptcy d) insurance e) Credit Score f) Roth IRA g) Traditional IRA

Roth IRA

U3: Match the term: Investment account for retirement. Money placed into it can be deducted from your taxable income a) 401(k) b) mortgage c) bankruptcy d) insurance e) Credit Score f) Roth IRA g) Traditional IRA

Traditional IRA

U4: Which of the following best describes a risk pool? a) people whose homes are located in a floodplain b) people who have high premiums c) a group of policy holders who share risk d) a group of insurance agents who sell policies

a group of policy holders who share risk

U2: Which of the following is an example of a non-liquid investment? a) a pension b) a home c) a car d) a strip mall

a pension

U5: How is a trade school different from a college? a) a trade school focuses on developing a particular skill set b) trade school graduation takes longer than college c) a trade school is always much more expensive than college d) a trade school provides a general education

a trade school focuses on developing a particular skill set

U2: Approximately what percentage of Americans own their own homes? a) about 46% b) about 64% c) about 10% d) about 80%

about 64%

U4: A person who sells, services, or negotiates insurance policies is called a/an- a) agent b) actuary c) beneficiary d) underwriter

agent

U5: What is college accreditation? a) an opinion survey of currently enrolled students about a school b) a ranking of the school's programs by a magazine c) an external evaluation of a school and its programs d) a measure of the starting salaries of graduates

an external evaluation of a school and its programs

U4: Which of the following is a typical home renovation scam? a) only accepting cash for a job b) asking for money before a project is started c) offering to provide references d) including extra details in the contract

asking for money before a project is started

U4: People who receive a payment from life insurance after the death of a policy holder are called - a) policy holders b) executors c) co-pays d) beneficiaries

beneficiaries

U2: Under what circumstances could a homeowner lose money on a home? a) the neighborhood slowly becomes less crime-ridden b) a home's value is guaranteed to appreciate c) bought in a small town just before the town's top employer closes d) the neighborhood has become more popular

bought in a small town just before the town's top employer closes

U2: Which type of bank account has these fees? Service Fees ATM fees Overdraft Fees a) checking b) savings c) loan d) money market

checking

U4: When you suffer an insured loss, you must file a ________ to get paid by your insurance company a) risk b) premium c) term d) claim

claim

U1: Which of the following categories on a bank statement shows checks you have written? a) debits b) balance c) overdraft d) credits

debits

U5: If you wish to graduate from college and be a TV news desk anchor, what is the most important question should you be asking about the college you will attend? a) is it close to home? b) does it have a really good journalism school? c) can I finish in two years? d) is it public or private?

does it have a really good journalism school?

U2: Which of the following is an accurate description of a liquid asset? a) includes homes b) does not include checking account balances c) easily converted into cash d) includes retirement funds

easily converted into cash

U4: Which of the following is a correct statement regarding estate planning? a) your estate is composed only of your assets b) if you die without a will the laws of your state will settle your estate according to your wishes c) estate planning does not require any changes once it is done d) estate planning can benefit you and your family under some circumstances

estate planning can benefit you and your family under some circumstances

U4: Insurance against the failure of a purchased item is called - a) extended warranty b) credit life coverage c) scheduled property insurance d) debt cancellation coverage

extended warranty

U4: What is the correct name of the list below? • deductible • driving record • type of car a) factors affecting car insurance cost that you do not control b) factors that do not affect car insurance costs c) factors affecting car insurance cost that you control d) factors affecting the cost of car insurance for females only

factors affecting car insurance cost that you control

U1: Which of the following taxes are employers required to deduct from your earnings? a) charitable contributions b) contributions to savings c) federal taxes d) union dues

federal taxes

U4: Which of the following factors makes car insurance premiums less expensive? a) good driving record b) luxury vehicle c) insured is a female d) young age of the insured

good driving record

U2: Which of the following is an advantage of renting a home over owning one? a) homeowners pay less long term b) homeowners receive tax breaks c) homeowners can make changes to the property d) homeowners are responsible for repairs

homeowners are responsible for repairs

U4: Which type of fraud is described below? Criminals can get the information they need from a variety of sources, including by stealing your wallet, rifling through your trash, or by compromising your credit or bank information. They may approach you in person, by telephone, or on the Internet and ask you for the information a) advanced fee schemes b) identity theft c) malware installation d) Nigerian letter fraud

identity theft

U2: People invest money to earn - a) interest b) wages c) fees d) credit.

interest

U2: Retirement income is described as "fixed" income, which means - a) it consists of annuities b) it only includes Social Security c) it doesn't really go up d) it's fixed to the cost of living

it doesn't really go up

U4: How much is the average premium on a homeowner's insurance policy? a) 5% b) less than 1% c) 20% d) 10%

less than 1%

U2: Which of the following is a correct statement about buying a car? a) all cars cost about the same amount to insure b) leasing does not require a down payment c) loan terms for cars can be as long as 72 months d) if you can afford the monthly payment you can afford to own the car

loan terms for cars can be as long as 72 months

U2: Homeownership is cheaper than renting in the - a) long term b) short term c) medium-term d) first year

long term

U4: Which of the following is true of property insurance? a) insurance premiums are more expensive than uninsured losses b) many forms of personal property can be insured c) musical instruments are not eligible to be insured d) homeowners are never required to insure their homes

many forms of personal property can be insured

U2: Which expense poses the greatest risk for retirees? a) utility costs b) mortgage payments c) food and clothing d) medical expenses

medical expenses

U1: Which of the following is the lowest priority in creating a personal budget? a) paying off high-interest loans b) money for entertainment c) emergency fund d) health care allowance

money for entertainment

U2: Which of the following is not an advantage of Credit Unions? a) superior Service b) more Credit Card Awards c) higher Interest Paid on Deposits d) lower Fees

more Credit Card Awards

U4: The Better Business Bureau and the Consumer Financial Protection Bureau are examples of - a) organizations that help protect against fraud b) organizations that defend businesses c) organizations that carry out fraud d) organizations that are not related to issues of fraud

organizations that help protect against fraud

U3: What is the most important factor in assigning a credit score? a) payment history b) recent credit c) length of credit history d) type of credit

payment history

U2: Which of the following types of retirement accounts are more common in public sector employment? a) pensions b) IRAs c) 401(k)s d) Roth IRAs

pensions

U1: If you exceed a category one month in your budget, you must - a) borrow money to pay for it b) abandon your unsuccessful budget c) take the money out of another category that month d) charge the difference to a credit card

take the money out of another category that month

U2: Which of the following best describes the miracle of compounding interest? a) a stock that costs $25 today might increase in value to $100 in a year's time. b) tiny amounts can grow to large sums given enough time c) every year, the amount of interest you earn compounds lower d) the higher the risk, the higher return you might earn

tiny amounts can grow to large sums given enough time

U3: What is the purpose of a credit report? a) to assess your creditworthiness b) to find out who has the best interest rates c) no purpose other than to collect information d) to publicly share your credit information

to assess your creditworthiness

U4: A person who evaluates risk and premiums is called a/an a) actuary b) agent c) beneficiary d) underwriter

underwriter

U3: Which of the following is an advantage of bankruptcy? a) you will no longer be harassed by collection agencies b) your home mortgage is forgiven c) you get to keep all of your personal property d) you still have to pay all your debts, but they are no longer past due

you will no longer be harassed by collection agencies

U1: If you have your wages automatically deposited into your checking account, - a) you will still get a paycheck b) your gross income will be credited to your account c) you will not get a pay statement d) your net income will appear as a credit on your statement

your net income will appear as a credit on your statement