26.UNIT 3 TEST

There are only four types of insurance; health, life, homeowner's, and automobile insurance.

False

When you want to open a new bank account, speak to a loan officer.

False

One reason to create a budget is to know what you can and can't afford.

True

An insurance policy is _____.

an agreement to reimburse an individual for a loss that occurs

Tammy wants to track her spending in categories. What tool should she use?

budget software

Match the term to the correct definition..

claim - a request for payment from an insurance company fixed expense - a cost that stays the same from month to month stop payment - a request by an account holder to not pay a specific payment money order - a form of payment that resembles a check account verification - a process where banks check your history to make sure you will be responsible scam - a fraudulent scheme

The first step in creating a budget is_____.

list and total your income

Tips for spending wisely include _____.

looking for bargains tracking your spending avoiding impulse purchases using credit cards infrequently

Luis received his account statement. He needs to make sure the balance in his checkbook register is correct. To reconcile his checkbook, the first thing he should do is _____.

put a checkmark next to all the transactions in the register that appear on the statement

Sara notices that she double paid her gas bill. What online service should she use?

request a stop payment

Regal Financial Institution specializes in home loans. What type of financial institution is it?

savings and loan

A spreadsheet is _____.

software that allows you to make calculations, organize data, and make comparisons

A premium is _____.

the amount an individual pays for an insurance policy

Allen needed to buy new soccer shoes. He stopped by the closest store and bought a pair for $98. Later, he saw an advertisement selling the same shoes for $82. What tip could have helped Allen?

Look for bargains.

Select all of the tools you could use to track your expenses.

Mvelopes® budget software spreadsheet Mint©

What are the numbers at the bottom of the check used for?

These are identification numbers used to identify the bank, your account number, and the check number.

Mike accidentally wrote a check for more than the balance in his checking account. The bank transferred money from his savings account to his checking account to cover the check. This banking service is _____.

overdraft protection

To avoid financial risks, you should _____.

protect your personal information obtain health insurance have an emergency fund purchase warranties know your consumer rights keep your money in a safe place become educated and informed

To balance your checkbook, you should _____.

subtract the withdrawals and add the deposits

Jason's balance in his checkbook register is $20.60. He receives his bank statement and sees that the balance is $50.60. He notices that a check in the amount of $30 does not appear on the statement. Is the balance in his checkbook register correct?

Yes

To manage your money, you should _____.

create a budget spend wisely create a financial plan learn about services offered at your bank manage your risks organize your financial documents

A net worth statement, insurance plan, and a budget are all part of a _____.

financial plan

Craig graduated from college and got his first job. He rented an apartment and purchased new furniture, appliances, and a television. What risk does he face?

theft