personal finance exam
renters insurance costs 20/mo thief breaks tv
$0
You cause an accident in which someone is injured. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $50,000 coverage limit per person for Bodily Injury. How much will you have to pay out-of-pocket?
$8000
budgeting
-
credit
-
insurance
-
20 copay for certain covered prescriptions
20 dollars
has an auto policy with a coverage limit of 30000 and a deductible of 1000
7000
What is one question an investor should ask before investing in ROTH IRA or traditional IRA
Do I want to pay taxes now (Roth) or later (Trad)
An actively managed mutual fund
Is managed by a fund manager who charges a fee
what is a brokerage account used for
It's a type of account used to buy and sell stocks, bonds, and mutual funds
to open brokerage account you
Must be able to transfer money from a checking or savings account.
snowball method
Organize debt by lowest to highest and pay the smallest debt first
Why are Target Date Funds (TDFs) becoming an increasingly popular option to invest in?
TDIs automatically adjust the allocation
What is an insurance premium?
Your monthly payment to your insurer, regardless of whether you use any services
how is a bond different from a stock
a bond is loan ou give to organization stock is partial ownership in company
your friend wants to use a robo advisor to manage her portfolio what does this mean
a computer software system is going to adjust her portfolio based on her preferences
just graduated from college and decides that instead of paying for insurance hell work on building emergency fund
accident or illness can strike at anytime and be expensive
three examples of risk factors lead to higher health insurance premiums
age, gender, smoke or not
download credit report
annualcreditreport.com
negative impact on credit score
applying for multiple credit cards
credit score eefect financial situation
approved for loan or not etc
wants to begin establishing credit history
ask parents to cosign a credit card or add him as authorized user
true about insurance premiums
auto insurance premiums can vary from company to company
least likely to look at your credit score
bank representative
review credit report
borrower was 30 days late
minimize her financial risk budget
buy health insurance through her company cheaper get renters insurance, but not split with her roomates, just pay for her share such as things she has purchased or her rent shoot for a low deductable high premium in some way
automatic voicemail states
call credit card company using the 1-800 number
just graduated from college and is on very tight budget
cannot change your pan instantly at an time
Since doctors only accept specific health insurance plans, what should you do prior to selecting your own health insurance plan?
check the list of doctors in the network
which term refers to an arrangment where you are responsible for paying percentage of covered medical ecpenses
co-insurance
insurance companys make money by
collecting more in premiums
While parked on the street overnight, the driver's side mirror of Sam's car is knocked off by a passing car. The driver flees the scene because they don't have insurance, so Sam never finds out who hit his car. Which type of auto insurance coverage will help cover the cost to get the mirror replaced?
collision
Why is compound interest more advantageous than simple interest?
compound interest allows you to earn interest not only on the amount you have saved but also on the interest youve already earned
While parked on the street overnight, the passenger window in Sam's car was smashed by someone trying to break in. Which type of auto insurance coverage will help cover the cost to get the window replaced?
comprehensive
error on credit report
contact credit card company have fix
works for cracker barrel which offers a 401(k) match for up to 3% of her salary which is 65,000 a year...
contribute full $150/mo to the 401(k) because company will match full amount
equal credit oppurtinity act
credit score
why is diversification a recommended strategy
diversifying portfolio reduce risk
social security generally provides insurance for which following
elderly or disabled
who tracks credit info
equifax, transunion
which of the following statements about exchange traded funds is true
etf prices can change troughout the day as they are exchanged on the market
what kinds of cognitive biases and behaviors can prevent people from making smart investing decisions
exiting the market because thats what everyone else is doing
You bought 10 shares of stock in StreamingVideoCo for $45 per share. Two months later you sold the 10 shares of stock for $80 per share. What was your profit or loss on StreamingVideoCo stock? (Assume that StreamingVideoCo didn't pay a dividend and that you didn't incur any trading fees during that period.)
gain of 350
why would someone choose to get long term disability insurance even if they already have health insurance?
health insurance only covers medical bills disability covers 40-60%
setting your premium, car insurance company considers each of following except
height
parents tell you on your 22nd birthday they would like for you to get your own health insurance
high deductible plan with a low monthly premium
how do insurance companies decide how much to charge
higher premiums-higher risk individuals
what type of auto insurance are you required to carry in almost every state
insurance if you cause injury to another person
has been saving for a while and has 1000 to invest she would like this 1000 to be the start of her retirement fund
invest 800 in tock index fund and 200 in bond index fund
how does investing in the stock market differ from putting money in a savings account at a bank
investing allows you to accumulate wealth for retirement while saving is best for short term purchases or emergencies
which of the statements below best describes the relationship between risk and return when considering an investment
investors expect to earn a higher return when they invest in a high risk asset like stock in a small company
which of these represents a potential consequence of neglecting to pay your credit card debts
lender can file bankrupcy
payday loans predatory lending
lenders prey
single person 1-2 years out of college
life insurance
friend confides in you that he has low credit score
make on time payments
least expensive health insurance
mary 26 who works as administrative assistant
looking for a new car
month payment on the loan will be about 100$ more jasmere and frank
not out of pocket expense
monthly premium
which about credit scores does bar graph support
more difficult for young people to borrow
three key differences between index funds mutual funds
mutual funds directly managed index follow index index have lower fee you dont pay an advisor
why so many people use payday loands
need quick access
its best to begin establishing when youre young because
needs credit history to rent first apartment etc.
reviews her brokerage statement
passive fund 500 overall return of 6.4 while passive fund 500 had return of 6.5
2 important factors- credit
payment history and amounts owed
negative impact on your credit score loan payment
pcik a second job for as long as it takes to accumulate
what is vesting period
period of time you hold a stock before selling it
beginner level investor and is eager to get started all of the following are things he should do except
pick individual stocks to see if he can beat the market
why are index funds so popular
provide low cost diversified investment option that closely matches the overall return of given index
investing knowledge
put as money in as possible because it will double because they are matching dollar for dollar probably wont start paying up 3 years after create brokeridge account start taking risks when comfortable
best alternative plan to purchasing a cell phone
put aside money that is equal to the monthly premium
insurance companies operate by charging individuals different prices for coverage depending on their risk levels
risk pooling
all of following would show up on credit report except
salary
how long will it take late payement to show up
seven years
22 years old just started first job
should put 80% stocks 20% bonds stocks are more risky
why is it important to start saving for retirement in 20s
so it builds up where you get alot of interest and have money you may need
prevent identity theft
strong passwords etc
factors that can influence individual company stock price
the supply and demand and the way people for the company act- controversial
how can someone make money from investing in a stock
they recieve dividents from company they bought stock of- or sell stock at a higher price than what they bought it for
when investing in individual stocks you should expect that
unforseen company events can have a dramatic impact on the stock price for a company
boost credit score greatest impact
using less than 30% of credit limit
implement her investing strategy 2 questions
what are the fees? who will help when she needs help?
you have the option to enroll in your companys employer sponsored health
you can make your monthly payments pre-tax
a disadvantage of using a robo advisor might be
you may not be able to get advice from human advisor when wanted
As a shareholder in a public company, what are the benefits available to you?
you may recieve dividends from the company if the company pays them and you have ownership of a portion
why is it important for you to understand your risk tolerance before you start investing
you should tailor investment portfolio so that it assumes an amount of risk you are comfortable with
2FA
you type in your account password on laptop prompted to enter one time code you recieve