Banking Basics and Insurance

Buying a new car

Which is not an example of a risk management strategy?

Checking account

Which type of bank account is best for everyday transactions?

Stock

A _________ is a share of ownership in a company.

The policyholder

A deductible is paid by...

TRUE

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily

A share of ownership in a company.

A stock is ________.

Being young and healthy means you can skip out on health insurance.

All of the following are true about health insurance except:

The amount of money you pay for an insurance policy

An insurance premium is...

Risk

Buying a home security system is an example of protecting your home against __________.

Insurance that will pay to get your car fixed In the event of an accident.

Collision insurance is...

Your financial institution

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?

Your bank

If there is an issue with your bank statement or account balance, who should you contact to resolve the issue?

Insurance premium

If you get into a car accident, your ________ may increase because you will be considered riskier for insurance companies to cover.

Collision insurance

Insurance that covers damage to your car from an accident is called...

Liability insurance

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called...

Long-term financial goals, like paying for retirement

Investing is best for _________.

Insurance that will pay for injury to another driver and/or damage to their car if you are in a an accident.

Liability insurance is...

Checking account

Savings accounts typically offer more interest than what type of account?

Insurance

Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...

One that compounds interest daily.

Which savings account will earn you the most money?

A and B

Why is it important to have insurance?

False

Your financial institution can't help you if there is a mistake on your bank account statement

A type of investment that invests in a mix of different types of investments

A mutual fund is ________.

A and C

An example of a risk management strategy is...

The amount you owe before insurance will cover the rest of the bill

An insurance deductible is...

The policyholder

An insurance premium is paid by...

You should always have health insurance regardless of your circumstances

Choose the statement that is true about health insurance.

The security system will alert authorities and deter criminals, protecting your valuables and property

How is having a security system for your home a risk management strategy?

Compare your own records of your spending with your financial institution's records

How would you reconcile your bank account to avoid spending more than you have?

Risk management strategies

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

A and C

What can insurance protect you from?

Insurance

What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

Injury to yourself

What does liability insurance not cover in the event of an accident?

You must pay all costs for health care and medical emergencies.

What is a consequence of not having health insurance?

A and B

What is a risk management strategy you could use to protect your home?

Airline tickets to your dream vacation

What should you NOT use a loan to purchase?

Check for any suspicious people lurking nearby

What should you do before you approach an ATM?

Inspect the ATM and its surroundings to make sure it is safe to use.

What should you do before you use an ATM?

Inspect the ATM to make sure it wasn't tampered with

What should you do before you withdraw money from the ATM?

Damage to your car

What will collision insurance cover in the event of an accident?

Deductible

When filling an insurance claim, the policyholder must pay a _____________, which is the amount you owe before insurance will cover the rest of the bill.

You should always have health insurance

When is it ok not to have health insurance?

Savings accounts don't usually pay interest on the money you deposit

Which of the following about savings accounts is FALSE?

Check cashing and payday loan companies

Which of the following financial institutions typically have the highest fees?

They charge low fees.

Which of the following statements about check cashing companies is FALSE?

They charge high fees.

Which of the following statements about check cashing companies is TRUE?

Investing is a guaranteed way to grow your money

Which of the following statements about investing is FALSE?

Investing is riskier than putting money in a savings accounts

Which of the following statements about investing is TRUE?

Savings accounts allow an unlimited amount of withdrawals each month

Which of the following statements about savings accounts is FALSE?

A stock is a share of ownership in a company

Which of the following statements about stocks is TRUE?

If there is a mistake on your bank account, you should contact your financial institution immediately

Which of the following statements is TRUE?

One that earns simple interest monthly.

Which savings account will earn you the least money?

Checking account

Which type of bank account typically offers the least (if any) interest?

To prevent financial burden in the case of an accident, theft, or another event

Why should you purchase insurance?

Insurance can cover you or your property in case of an accident, theft, or another unpredictable event

How can insurance protect you from financial loss?

Keep your own records to compare with your financial institution's records.

How can you avoid spending more than what is in your bank account?

All of the above

Why is it important to reconcile your bank statements?

Access to investment advice

Which of the following is NOT a common feature of a financial institution?

Access to investment products

Which of the following is NOT a common feature of a financial institution?

Investment trading

Which of the following is NOT a common feature of a financial institution?

Health insurance protects you financially from medical emergencies.

Which of the following is a reason someone should get health insurance?

People with health insurance can skip lines in emergency rooms.

Which of the following is not an advantage of having health insurance?

Savings account don't usually require a minimum balance

Which of the following statements about savings accounts is FALSE?