Money Management Test Study Guide

a request for payment from an insurance company

Claim

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

False

A net worth statement, insurance plan, and a budget are all part of a _____. saving and investing plan financial plan savings account long-term financial goal

Financial Plan

The Kelly family of three has a car and rents an apartment with nice furniture and appliances. What types of insurance should they have?

Health insurance Auto insurance Renters insurance

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

True

The four types of insurance are health, life, homeowner's, and automobile insurance.

True

An insurance policy is _____. the amount you pay each month for insurance an agreement to reimburse an individual for a loss that occurs coverage for the contents of your home, such as furniture, television, bikes, appliances, and clothing a document that describes all of the assets covered

a document that describes all of the assets covered

a process where banks check your history to make sure you will be responsible

account verification

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 _____. subtract all the deposits that appear in the register, but are not on the statement put a checkmark next to all the transactions in the register that appear on the statement add all the transactions together add all the deposits that appear in the register, but are not on the statement

add all transactions together

To be good stewards with God's resources, you should _____. create a financial plan organize your financial documents spend wisely create a budget manage your risks spend more than you make learn about services offered at your bank

all except spending more than you make

Tammy wants to track her spending in categories. What tool should she use? saving and investing plan net worth statement budget software bill pay

budget software

a cost that stays the same from month to month

fixed expense

The first step in creating a budget is to _____. list your assets list and total your expenses add up your income and expenses and subtract the taxes list and total your income

list your assets

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? Buy high-quality products. Avoid impulse purchases. Use a credit card infrequently. Look for bargains.

look for bargains

Choose all that apply. Select all the tools you could use to track your expenses. budget software spreadsheet Mint automatic bill payment Mvelopes

mvelopes budget software mint spreadsheet

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?

no

Choose all that apply. To avoid financial risks, you should _____. obtain health insurance keep your money in a safe place protect your personal information become educated and informed provide personal information only over the internet have an emergency fund purchase warranties know your consumer rights

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

Before you open a bank account, what should you do?

organize documents research know what kind of account you want

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 _____. money order direct deposit transfer overdraft protection

overdraft protection

Sara notices that she double-paid her gas bill. What online service should she use? reject payment service request a stop-payment transfer transaction withdrawal tool

request a stop-payment

Regal Financial Institution specializes in home loans. What type of financial institution is it? savings and loan bank credit union brokerage firm

savings and loan

a fraudulent scheme

scam

A spreadsheet is _____. software that allows you to make calculations, organize data, and make comparisons a tool that allows you to send your net worth to a loan officer an online banking tool that helps you apply for a car loan software that makes it possible to create money orders

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

a request by an account holder for the bank to not pay a specific payment

stop-payment

To balance your checkbook, you should _____. add the withdrawals and subtract the deposits enter checkmarks for transactions that appear on your statement subtract the withdrawals and add the deposits call the bank to find out what your balance is and write this amount in your check register

subtract the withdrawals and add the deposits

A premium is _____. the amount an individual pays for an insurance policy the contract between the insurance company and an individual the amount an individual pays after they file a claim the amount that is paid by the insurance company to the individual insured

the amount an individual pays for an insurance policy

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? identity theft theft losing money in an investment financial planning

theft

Choose all that apply. Tips for spending wisely include _____. tracking your spending avoiding impulse purchases using credit cards infrequently borrowing money from your friends looking for bargains avoiding buying gifts

tracking your spending avoiding impulse purchases looking for bargains