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

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